Bipartisan Bill Targets Prediction Markets Nationwide

Representatives Steven Horsford and Mark Amodei introduced the Prediction Markets Are Gambling Act in the House during July 2026, creating a bipartisan effort to address event contracts on federally registered platforms. The measure would prohibit CFTC-overseen exchanges from listing sports and casino-style contracts, shifting oversight to state and tribal regulators in line with traditional sportsbooks.

Core Provisions of the Proposed Legislation

The bill closes what supporters describe as a regulatory gap by classifying certain prediction market offerings as gambling activities rather than financial instruments. Platforms that currently operate under federal registration would face restrictions on contracts tied to sports outcomes or casino games, while existing state frameworks would handle licensing and consumer safeguards. This approach aligns with earlier Senate legislation introduced in March, establishing a coordinated push across both chambers to standardize treatment of these products.

Data cited in discussions around the bill points to potential revenue shifts for states, with estimates suggesting over one billion dollars in gaming tax collections could be affected if the perceived loophole remains open. Nevada stands to see direct implications for its regulated industry, which operates under strict oversight and contributes significantly to state budgets through established tax structures.

Industry Support and Stakeholder Positions

The American Gaming Association has backed the legislation, along with UNITE HERE and the Culinary Workers Union. These groups have highlighted the need for consistent consumer protections and the preservation of state-level regulatory authority over gaming activities. American Gaming Association statements emphasize that treating event contracts like other forms of wagering maintains fairness across operators and jurisdictions.

Observers note that the companion Senate bill from March set the stage for this House action, allowing lawmakers from both parties to align on enforcement mechanisms. The legislation does not ban prediction markets outright but redirects them away from federal platforms toward state-regulated channels, where licensing, taxation, and player protections already exist under frameworks developed over decades.

Regulatory Context and Implementation Details

Federally registered platforms currently offer event contracts that some view as overlapping with state gaming authority, prompting the push for clarification. The bill specifies that sports and casino-style contracts would fall under the same rules applied to traditional sportsbooks, including tribal compacts where applicable. This reclassification aims to ensure that revenue from such activities flows through established state systems rather than bypassing them via federal oversight channels.

Those familiar with the measure point out that consumer protection standards vary by jurisdiction, and uniform application through state regulators could address inconsistencies that arise when platforms operate across multiple boundaries. The proposal also seeks to safeguard Nevada's position as a leader in regulated gaming, where operators comply with detailed reporting and compliance requirements that differ from federal derivatives rules.

Timeline and Legislative Path Forward

Introduction of the House bill follows the Senate version by several months, reflecting ongoing coordination between chambers on this issue. Lawmakers have scheduled initial discussions for later in the 2026 session, with committee reviews expected to examine the scope of affected contracts and the mechanics of transitioning oversight. Proponents have outlined that the changes would apply prospectively, giving platforms time to adjust offerings while preserving the core goal of aligning federal and state authority.

Conclusion

The Prediction Markets Are Gambling Act represents a targeted response to overlapping regulatory frameworks, with its bipartisan sponsors focusing on revenue protection, consumer standards, and state sovereignty over gaming. As the legislation advances through the House, its companion measure in the Senate continues to shape the broader debate on how event contracts fit within existing gaming structures across the country.