Bipartisan Legislation Aims to Regulate Prediction Markets as Traditional Gambling

U.S. Representatives Steven Horsford, a Democrat from Nevada, and Mark Amodei, a Republican from the same state, introduced the Prediction Markets Are Gambling Act in the House during July 2026, and this measure seeks to classify sports and casino-style event contracts on federally registered platforms as gambling activities subject to state and tribal oversight rather than allowing them under CFTC jurisdiction.

The bill closes what supporters describe as a regulatory gap that has permitted certain prediction market operators to offer contracts resembling sports betting and casino games without adhering to the licensing and taxation frameworks that apply to traditional sportsbooks in Nevada and other states, while the legislation arrives as a companion to a Senate version introduced earlier in March 2026.

Core Provisions of the Proposed Act

Under the terms outlined in the legislation, platforms overseen by the Commodity Futures Trading Commission would face prohibitions on listing event contracts tied to sports outcomes or casino-style wagers, and this restriction would redirect such offerings toward state-regulated channels where consumer protections, age verification standards, and revenue collection mechanisms already exist for licensed operators.

Those familiar with the bill note that its language emphasizes alignment with existing gaming laws in states like Nevada, where tribal and commercial casinos contribute substantial tax payments, and the measure explicitly references an estimated loss exceeding one billion dollars in potential state gaming tax revenue that has occurred due to the current federal loophole.

Impact on Nevada's Gaming Industry and State Revenue

Nevada's regulated gaming sector stands to benefit from clearer boundaries because the state's oversight system already generates consistent tax collections from sportsbooks and casinos that must meet strict operational requirements, whereas unregulated prediction market contracts have drawn activity away from these taxed venues without providing equivalent contributions to public funds.

Analysts tracking industry data have pointed to the revenue shortfall as a key driver behind the bipartisan effort, since Nevada relies on gaming taxes to support education, infrastructure, and public services, and the bill's sponsors have highlighted how the absence of state-level controls allows platforms to operate without remitting the same percentages required of licensed entities.

Supporters including the American Gaming Association have endorsed the legislation because it reinforces the principle that all sports-related wagering should fall under the same regulatory umbrella that protects players and ensures fair competition among operators who invest in compliance infrastructure.

Support from Labor and Industry Groups

UNITE HERE and the Culinary Workers Union have also backed the measure, citing the need to preserve jobs tied to Nevada's established gaming properties that operate under collective bargaining agreements and adhere to rigorous safety and fairness standards enforced by state regulators.

The involvement of these organizations underscores the broader economic stakes, since shifts in betting volume toward unregulated platforms can reduce foot traffic and employment opportunities at unionized casinos and sportsbooks that have long formed the backbone of the state's hospitality sector.

Connection to Senate Companion Bill

The House introduction follows the Senate bill filed in March 2026, and together the two measures create a coordinated push across both chambers to address the same regulatory inconsistency, with lawmakers from both parties emphasizing that prediction markets offering event contracts should not receive exemptions unavailable to traditional gambling operators.

Observers familiar with the legislative timeline note that the companion structure increases the likelihood of hearings and potential advancement, particularly as states continue to monitor how federal decisions affect their ability to collect taxes and enforce local gaming statutes.

Regulatory Context and CFTC Oversight

Federally registered platforms currently fall under CFTC purview for certain derivative contracts, yet the new legislation argues that sports and casino-style events do not qualify as appropriate financial instruments and instead warrant treatment identical to sportsbooks, which must secure approvals from state gaming commissions before accepting wagers.

This distinction matters because CFTC rules permit a different level of oversight focused on market integrity rather than the consumer safeguards, responsible gaming tools, and tax remittance obligations that characterize state-regulated environments in Nevada and similar jurisdictions.

Conclusion

The Prediction Markets Are Gambling Act represents a targeted attempt to realign federal policy with state authority over gaming activities, and its progress will depend on how lawmakers weigh the interests of regulated industries against the operations of platforms that have expanded under the existing CFTC framework. The bill's bipartisan sponsorship from Nevada representatives signals strong regional support for protecting established tax bases and regulatory standards that have developed over decades.