Nevada lawmakers have introduced bipartisan federal legislation that would prohibit federally regulated trading platforms from offering sports prediction contracts and casino-style event contracts, seeking to place those activities firmly under state and tribal gaming authority.
Reps. Steven Horsford, D-Nev., and Mark Amodei, R-Nev., introduced the Prediction Markets Are Gambling Act in the House. The proposal has a companion measure in the Senate introduced in March 2026 by Sens. Adam Schiff, D-Calif., John Curtis, R-Utah, and Catherine Cortez Masto, D-Nev.
The legislation targets event contracts that allow users to take positions on the outcome of sporting events through platforms regulated by the Commodity Futures Trading Commission. Companies including Kalshi and Polymarket have become prominent in the prediction market sector.
The bill would prevent federally registered exchanges from listing contracts tied to sports betting and casino-style games. It would leave legitimate financial hedging contracts, including those linked to weather or economic conditions, within the CFTC’s jurisdiction.
“This is about protecting jobs, protecting consumers, and protecting the integrity of our gaming industry,” Rep. Horsford explained. “Nevada has always been the gold standard for gaming regulations. These companies are exploiting a federal loophole that allows them to effectively sidestep state oversight that every other legal sportsbook must follow. They’ve already cost states over $1 billion in lost gaming tax revenue money that should have gone toward funding schools, roads, and critical programs. That’s why I introduced this bill to close the loophole, hold these companies to the same standard, and protect Nevadans.”
Bill Seeks to Separate Gambling From Financial Contracts
The proposal attempts to establish a clearer legal distinction between event contracts used for commercial hedging and products that operate in a way similar to conventional sports wagering.
“When it looks like sports betting, it acts like sports betting, and profits from sports betting, then it should follow the same rules as every other sportsbook,” Horsford said. “Regardless of which app a consumer uses, they deserve the same protection, and that has been the gold standard of regulation that Nevada has been built on, and it’s what we are working to ensure is protected.”
Prediction market companies have argued that their products do not operate like conventional gambling because the platforms generally earn fees from trading rather than profiting directly when customers lose.
Sports contracts have nevertheless become a major part of prediction market activity. One estimate cited in the supplied material indicated that such platforms accounted for more than a quarter of sports betting activity during the World Cup, while sports can represent as much as 90% of trading volume for some prediction market businesses.
“Gaming policy has long been the responsibility of states and tribes, not unelected federal regulators,” said Rep. Amodei. “This bipartisan bill closes a federal loophole that allows sports betting to masquerade as financial trading and ensures legitimate event contracts remain under the CFTC’s jurisdiction.”
The legislation also contains language stating that federal law does not override state or tribal authority over gambling. States and tribes would retain the ability to establish and enforce their own gaming policies.
The measure would also remove the need for prolonged CFTC rulemaking on sports-related event contracts by addressing the issue directly through federal law.
Regulatory Dispute Intensifies Around Prediction Markets
The legislation comes amid an ongoing disagreement over whether sports prediction contracts fall primarily under federal commodities regulation or state gaming laws.
The CFTC regulates federally registered prediction market platforms. In February, CFTC Chairman Mike Selig defended the commission’s authority in the sector, and the agency later proposed a rule that could permit sports contracts nationwide.
Nevada regulators have challenged prediction market operators through litigation and have sought to prevent companies including Kalshi and Polymarket from offering their products in the state without gaming authorization.
“Sports prediction contracts are sports bets — just with a different name.” said Senator Schiff. “And yet, these contracts have been offered in all fifty states in clear violation of state and federal law. Rather than enforce the law, the CFTC is greenlighting these markets and even promoting their growth. 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. I’m proud to partner with Senator Curtis, and Representatives Horsford and Amodei to put a stop to these illegal markets,”
Senator Curtis also raised concerns about younger consumers and state authority.
“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,” said Senator Curtis. “This bipartisan legislation clarifies regulatory jurisdiction, ensuring that states can maintain their authority over sports betting and casino gaming. The Prediction Markets Are Gambling Act is about respecting states’ authority, protecting families, and keeping speculative financial products out of spaces where they don’t belong.”
The bill would leave bona fide hedging products unaffected. Lawmakers cited the example of a Los Angeles ice cream shop owner who used weather contracts to offset business losses during cold weather, demonstrating the type of event-based financial product that would remain under CFTC oversight.
Gaming Groups and Unions Back the Proposal
The American Gaming Association, UNITE HERE and Culinary Workers Union Local 226 have endorsed the legislation.
“This important bill reinforces Congressional intent that gaming is governed by state and tribal law.” said AGA CEO and President Bill Miller. “The AGA applauds Representatives Horsford and Amodei for introducing the companion legislation to Senators Schiff and Curtis. Together, these bills represent a bipartisan and bicameral effort to protect consumers, uphold state and tribal authority on regulating gaming, and stop so-called “prediction markets” from offering backdoor sports betting that is siphoning billions of dollars in tax revenue from local communities across America.”
Labor organizations have focused on the potential impact of prediction markets on casino employment. UNITE HERE represents more than 100,000 workers in tribal and commercial casinos nationwide, while the Culinary Union represents about 60,000 members employed at casino resorts in Las Vegas, downtown Las Vegas and Reno.
“Prediction market gambling is threatening the livelihoods of over 100,000 UNITE HERE members who work in Tribal and commercial casinos across the country,” said Gwen Mills, President, UNITE HERE. “Our union has achieved a life-changing standard of wages and benefits in the gaming industry. Congress must take immediate action to explicitly ban prediction market sports betting and casino games and reaffirm that gaming is governed by Tribal and state authorities. We thank Representatives Horsford and Amodei for standing with casino workers and their families.”
The proposal joins several other congressional efforts addressing prediction markets. Rep. Dina Titus, D-Nev., introduced the Fair Markets and Sports Integrity Act, which would also prohibit certain sports-related contracts.
Another proposal, the Event Contract Enforcement Act, would extend restrictions to contracts involving elections, terrorism, war and assassinations.
Horsford is also a co-sponsor of H.R.7004, the Public Integrity in Financial Prediction Markets Act, which seeks to prevent federally elected officials and government employees from using inside information to trade prediction market contracts.
The Prediction Markets Are Gambling Act takes a narrower approach centered on sports and casino-style products while expressly preserving legitimate hedging contracts and state and tribal authority over gaming.