Casino Union Leader Calls for Banishment of Sports Event Contracts

The leader of a popular labor union is urging Congress to roll back sports event contracts offered by prediction markets, which she said mimic casino gambling.

Gwen Mills, whose UNITE HERE union represents roughly 300,000 North American workers in the hospitality and entertainment industry, said that prediction markets threaten the existence of union jobs in the gaming industry. 

Her hope is that the federal government will prohibit sports markets, which allow customers to predict the outcomes of sports events in a risk-to-win format.

Casino union wants sports contracts gone

Roughly one-third of UNITE HERE’s members are employed by tribal and commercial casinos. Other jobs represented by the union include those in hotels, other gaming facilities, bars and restaurants, transportation, and other related occupations.

According to Mills, prediction markets infringe upon the territory of retail casinos by violating state laws and compacts.

Although they don't offer live-dealer table games, slot machines, or other casino amenities, her belief is that sports event contracts are a form of unlicensed gambling, which is impermissible according to state regulations.

“[Workers’] livelihoods are now threatened by prediction markets conducting illegal sports betting in violation of Tribal sovereignty and state laws across the country,” said Unite Here President Gwen Mills in a statement. “Congress must take immediate action to ban prediction markets from conducting sports betting and casino-style games.”

Mills’ criticism comes as the CLARITY Act (H.R. 3633) continues to pick up steam at the federal level. The bill would seemingly increase the power of the Commodity Futures Trading Commission and would not restore power to state gaming officials.

“This CLARITY Act seems to disregard all of that and try to federalize an area of policy that has been historically and exclusively reserved to states and tribes,” tribal gaming attorney Scott Crowell said. “If the CLARITY Act passes in its current form, it strengthens the hands of the CFTC and the operators in their arguments by not clarifying that swaps don’t mean sports betting or gaming. The [Commodity Exchange Act] says that, and the CFTC ignores that.”

Legal battle heats up

As the CLARITY Act continues to be discussed, Mills and UNITE HERE are backing the Prediction Markets Are Gambling Act (S. 4160). This bill would walk back the federal government’s authority over prediction operators and would give state gaming officials a greater say in how the platforms are regulated.

“As the Senate considers cryptocurrency market structure legislation, this is an urgent moment to reaffirm congressional intent that gambling is governed by tribal and state authorities,” Mills said.

UNITE HERE also outlined the potential harmful effects that could arise by describing the recent progress it achieved for workers. 

Higher wages, expanded healthcare, and better retirement plans were all discussed and were said to be threatened by the continued spread of the prediction industry.

“Good casino jobs allow our members to buy their first homes, send their kids to college, and quit second jobs to spend more time with their families,” Mills said. “We will not allow prediction markets to attack our jobs and turn back our progress.”

The union’s concerns mirror those raised by the American Gaming Association, a national trade group representing licensed gaming operators, whose president claimed that prediction platforms may circumvent state legislation by offering sports event contracts to their customers.