Two Nevada congressmen have unveiled a bipartisan bill that would block prediction market platforms from offering sports and casino‑style event contracts.
Brought forward by congressmen Steven Horsford and Mark Amodei, the Prediction Markets are Gambling Act aims to close a “loophole” that they allege allows platforms such as Polymarket and Kalshi bypass “the licensing requirements, consumer protections, tax obligations and regulatory oversight that apply to legal gaming operators”.
The bill, presented on Thursday 23 July, would not block contracts on markets such as politics-, economic- or weather-style events but looks to make a clear distinction between gambling and hedging.
It would also continue to allow states and tribes to enforce their own legislation and make clear that nothing in federal law would overrule locally relevant regulations.
If passed, the act seeks to put to bed the ongoing battle between the derivatives regulator, the Commodity Futures Trading Commission (CFTC), and state courts.
The proposed bill highlighted that a bet on the Super Bowl does not become a financial product because it is made through a trading app.
Explaining the reason behind introducing the bill, Horsford said it was about protecting the “integrity” of the gambling industry and that prediction markets have cost US states “$1bn in lost gaming tax revenue”.
“This is about protecting jobs, protecting consumers, and protecting the integrity of our gaming industry,” he said in a statement.
“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.
“That’s why I introduced this bill to close the loophole, hold these companies to the same standard and protect Nevadans.”
Amodei added that gambling legislation has been the responsibility of states and tribes, as opposed to “unelected federal regulators”.
He said: “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 bill shares the same name as one introduced in March 2026 by senators Catherine Cortez Masto, Adam Schiff and John Curtis.
That act drew attention to the fact that the CFTC spent 15 years preventing the listing of gaming-style contracts, only to change its mind and partner with US sporting leagues including Major League Baseball.
Earlier this month, the CFTC ordered Kalshi to keep operating in Michigan despite a court filing a temporary restraining order against the platform and it being adhered to by Kalshi.
During CME Group’s Q2 earnings call on Wednesday, 22 July, CEO Terry Duffy said he expects sports events contracts to end up in the Supreme Court and stressed that they are “gambling”.
Speaking to EGR earlier this month, however, WagerWire co-founder Zach Doctor insisted it will be hard to put prediction markets “back in the bag” and that they are “here to stay”.
The post Nevada congressmen launch bipartisan bid to outlaw sports-based prediction markets first appeared on EGR Intel.
The Prediction Markets are Gambling Act would bar exchanges from listing sports or casino‑style contracts, a move sponsors say is needed to safeguard the integrity of state’s regulated gambling sector
The post Nevada congressmen launch bipartisan bid to outlaw sports-based prediction markets first appeared on EGR Intel.