Investing.com -- DraftKings (NASDAQ: DKNG) and Flutter Entertainment (NYSE: FLUT) shares rose 7% Monday morning following a Wall Street Journal report that U.S. senators plan to introduce bipartisan legislation to ban sports bets on prediction markets.

The proposed legislation would prohibit entities regulated by the Commodity Futures Trading Commission, including prediction-market exchanges Kalshi and Polymarket’s U.S. platform, from listing contracts related to sporting events. The bill also seeks to ban casino-style games such as slot machines, video poker, blackjack and bingo from these platforms.

Sen. Adam Schiff (D., Calif.) said the CFTC is greenlighting these markets and promoting their growth, adding that it’s time for Congress to step in and eliminate this backdoor which violates state consumer protections, intrudes upon tribal sovereignty and offers no public revenue.

Sen. John Curtis (R., Utah), the proposed bill’s co-sponsor, said too many young people in Utah are getting exposed to addictive sports betting and casino-style gaming contracts that belong under state control, not under federal regulators.

The legislation represents the first bipartisan Senate bill seeking to regulate prediction markets.