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Indian Gaming Association Opposes Revised CLARITY Act Over Tribal Gaming Protections

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Altay Celikkaya

Content Manager

Updated: 14/09/26

Reading Time: 3 minutes

The Indian Gaming Association (IGA) has opposed the latest version of the Digital Asset Market CLARITY Act, arguing that the revised US crypto legislation still does not sufficiently protect tribal gaming authority. The updated text, released by Senator Cynthia Lummis on 10 September, includes changes intended to address tribal concerns about prediction markets.

However, the IGA maintains that the proposal does not expressly safeguard the Indian Gaming Regulatory Act (IGRA) or tribal and state gambling laws from potential federal pre-emption. The dispute comes ahead of a Senate procedural vote expected on 15 September.

Indian Gaming Association logo beside the US Capitol and a CLARITY Act document, illustrating the group’s opposition to the revised bill over tribal gaming protections.

Regulation & Compliance

Key Takeaways From the Revised CLARITY Act for Tribal Gaming

IGA remains opposed because the revised legislation does not explicitly preserve tribal and state gaming authority.
The updated text narrows certain DeFi provisions to spot and cash digital commodity transactions in response to tribal concerns.
Tribal gaming interests want clearer limits on whether federal commodities law can override IGRA and existing gambling frameworks.
The outcome could affect market access and compliance requirements for prediction-market operators offering sports-related contracts.

Revised Text Does Not Satisfy IGA

Lummis’ official Senate release says the updated bill specifies that certain decentralised finance provisions apply only to spot and cash digital commodity transactions. Her office described the change as a response to tribal concerns about the legislation’s potential impact on prediction markets.

The IGA nevertheless argues that the revision does not resolve the central question of gaming jurisdiction.

Chairman David Bean said:

The CLARITY Act represents the largest expansion of CFTC authority since the 2010 Dodd-Frank bill.

The association wants any final legislation to make clear that federal commodities regulation does not displace IGRA, tribal gaming laws or state gambling rules.

CFTC Powers Sit at the Centre of the Dispute

The IGA has previously urged senators to reject the CLARITY Act unless it includes protections for tribal economies and gaming law. In an official IGA statement, the organisation also called for safeguards preventing designated contract markets from listing contracts tied to sports betting or casino-style gambling.

Those concerns intersect with the CFTC’s proposed prediction-market framework, which seeks to clarify how event contracts are assessed under the Commodity Exchange Act. The debate therefore extends beyond digital assets to whether a federal derivatives framework could reshape gaming regulation traditionally governed by state law, tribal sovereignty and tribal-state compacts.

Kalshi Cases Show Why Pre-emption Matters

The jurisdictional dispute is already playing out in federal courts. New Jersey has asked the US Supreme Court to settle prediction-market authority and determine whether federally regulated platforms can offer sports contracts without complying with state gambling laws, after conflicting appellate decisions increased uncertainty over federal pre-emption.

A separate Iowa ruling rejected Kalshi’s request for preliminary protection from state gambling enforcement. The court found that Kalshi had not shown it was likely to succeed at that stage on its argument that the Commodity Exchange Act pre-empts Iowa gambling law. The underlying case remains unresolved.

Together, the cases explain why tribal groups are seeking explicit statutory language rather than relying on courts to define the boundary between commodities oversight and gambling regulation.

What Operators Should Watch Next

The immediate focus is the Senate vote and whether further amendments address the IGA’s demand for a tribal savings clause. If the legislation advances, wording around prediction markets, designated contract markets and federal pre-emption will be particularly important for gaming operators and compliance teams.

For B2B stakeholders, the key issue is whether Congress preserves a clear separation between federally regulated event contracts and products treated as sports betting or casino gambling. Continued ambiguity could prolong litigation, complicate market-access decisions and leave operators navigating competing federal, state and tribal interpretations.