NV Lawmakers Introduce Prediction Markets Are Gambling Act

Jonathan Rodriguez

Written by: Jonathan Rodriguez

Published: Fri Jul 24, 2026, 11:00 am ET

Read Time: 5 minutes

NV Lawmakers Introduce Prediction Markets Are Gambling Act

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Representatives Steven Horsford and Mark Amodei introduced the Prediction Markets Are Gambling Act on July 23. The legislation would prevent federally regulated trading platforms from offering products that lawmakers consider gambling rather than financial instruments.

The bill marks another escalation in the national dispute over prediction markets. Platforms such as Kalshi and Polymarket have expanded event-based offerings across sports and other categories. State regulators, meanwhile, argue that sports contracts closely resemble wagers offered by licensed sportsbooks.

Nevada lawmakers now want Congress to clarify the boundary between financial markets and gambling. They also warn that prediction markets could cost states as much as $1 billion in lost gaming tax revenue if sports event contracts continue expanding outside state-regulated systems.

The proposal has also gained momentum in the Senate. Sens. Adam Schiff (D-CA), John Curtis (R-UT), and Catherine Cortez Masto (D-NV) have co-sponsored companion legislation, giving the effort bipartisan support in both chambers.

Prediction Markets Are Gambling Act Targets Regulatory "Loophole"

The bill targets prediction market exchanges that list sports and casino-style event contracts. Lawmakers specifically point to platforms such as Kalshi and Polymarket, which have argued that federal oversight protects their contracts from state gambling laws.

The CFTC regulates designated contract markets and other derivatives under federal law. Nevada lawmakers argue that some platforms use this structure to bypass state gaming requirements, including licensing, consumer protections, responsible gambling measures, and state gaming taxes.

The legislation would therefore prevent prediction markets from offering sports betting and casino-style gambling under the guise of financial products. Lawmakers say this approach would close a regulatory loophole while protecting state authority over gambling.

The bill also seeks to distinguish gambling from legitimate financial risk management. Contracts designed for genuine business hedging would remain under CFTC jurisdiction. Those products could include derivatives connected to weather, economic conditions, and other commercial risks.

This distinction aims to prevent the legislation from disrupting traditional financial markets. Instead, it focuses on contracts that lawmakers believe function like wagers on sporting events or casino outcomes.

Why Nevada Lawmakers Are Involved in the Prediction Market Fight

Nevada lawmakers have taken a leading role because the state has built one of the country's most comprehensive gaming industries. The rise of sports event contracts creates a direct challenge for licensed operators and regulators.

Traditional US online sportsbooks must follow state-specific licensing and compliance requirements. Prediction market platforms, meanwhile, claim federal oversight allows them to operate under a different framework. The same debate affects US online casinos and other gaming businesses competing for consumer spending.

Nevada lawmakers argue that similar products should face similar regulatory standards. They also say the state could lose significant gaming tax revenue if prediction markets capture wagers that would otherwise flow through licensed operators.

"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 told The Nevada Independent in an interview.

"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."

The legislation reflects Nevada's broader interest in protecting its gaming framework. The state has long relied on strict oversight, licensing requirements, and gambling taxes to regulate its industry.

Bill Receives Support and Opposition

Supporters say the bill would protect consumers and preserve a level playing field. The American Gaming Association has backed efforts to restrict sports event contracts outside state gambling systems. Labor groups, including the Culinary Union, have also supported the legislation.

Supporters argue that prediction markets should not avoid rules imposed on licensed gaming operators. They also cite responsible gambling, consumer protection, and tax revenue concerns. The $1 billion figure cited by lawmakers underscores the potential financial stakes for states.

Critics, including prediction market advocates, oppose the bill's approach. They argue that event contracts represent financial products rather than traditional wagers.

The CFTC has also defended its authority over federally regulated prediction markets. The agency and market operators have argued that federal law can preempt state efforts to restrict eligible event contracts.

Opponents could therefore argue that Congress should improve federal oversight instead of banning specific contract categories. The dispute has created a broader debate over whether sports event contracts belong under financial regulation or state gambling laws.

Prediction Markets Bill Faces Long Legislative and Legal Road

The Prediction Markets Are Gambling Act must now move through Congress before reaching President Donald Trump. The Senate companion bill could give the proposal additional momentum, but lawmakers still face committee consideration, negotiations, and opposition from prediction market companies.

Nevada's current legal battles against prediction markets could also influence the legislation. State authorities have argued that sports contracts constitute wagering under Nevada gambling law, while prediction market operators have maintained that federal derivatives law protects their products.

That conflict has spread across the United States as states challenge prediction markets over sports-related contracts. Meanwhile, the CFTC continues defending its authority over federally regulated event contracts.

The legal landscape remains unsettled. Courts have considered competing arguments about federal preemption, state gambling authority, and the classification of event contracts. Those cases could shape congressional negotiations as lawmakers consider the new legislation.

The Nevada-backed bill represents one of the clearest attempts to establish that sports event contracts belong within state gambling systems. If Congress passes the measure, prediction market operators could lose access to a major category of contracts.

For now, the legislation adds another front to the growing battle over how the United States should regulate prediction markets. It also signals that Nevada lawmakers intend to protect the state's gambling framework from competition operating under a different regulatory model.

Jonathan Rodriguez
Jonathan Rodriguez

Jonathan is an avid basketball fan, and is often looking forward to the next upcoming NBA season when not checking players' stats during games. He also likes to keep his ears on the ground for the latest rumblings in the online casino industry.

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