Lead brief
A bipartisan bill introduced in the US House aims to ban federally registered sports prediction markets nationwide, mirroring earlier Senate efforts. Lawmakers from Nevada, Utah, and California say event contracts risk expanding unregulated gambling under federal law.
Coverage frame
This piece sits inside the wider 31Casino news desk, where single developments are read against regulation, market structure, and reader relevance.
Primary source base
- ▸Bipartisan House bill seeks to prohibit sports and casino-style prediction markets across the United States.
- ▸The "Prediction Markets Are Gambling Act" is co-sponsored by Nevada Representatives Steven Horsford and Mark Amodei.
- ▸The measure aligns with earlier Senate legislation introduced by John Curtis and Adam Schiff.
- ▸Lawmakers argue that sports prediction markets essentially constitute gambling and require federal restriction.
What Happened
On July 24, 2026, US Representatives Steven Horsford (D-NV) and Mark Amodei (R-NV) unveiled the “Prediction Markets Are Gambling Act,” a bipartisan proposal targeting the rapid growth of event-based trading platforms. The bill would ban any federally registered market from listing contracts on sports or so-called casino-style events, effectively blocking regulated platforms from offering these popular, skill-based wagers nationwide.
This House measure accompanies a Senate bill with parallel language, introduced and advocated by Senators John Curtis (R-UT), Adam Schiff (D-CA), and Catherine Cortez Masto (D-NV). Both bills focus explicitly on preventing prediction markets from functioning as sports betting platforms under a regulatory veil, even as such markets proliferate globally as alternative financial products.
Why It Matters
Prediction markets—platforms where users trade contracts on the outcomes of real-world events, including sports—have been at the heart of recent regulatory debates in the US. Proponents argue these digital exchanges provide useful information about future outcomes and can aid in everything from election forecasting to academic research. Critics, however, contend that allowing contracts based on sporting or casino events blurs the line between prediction markets and outright gambling, risking circumvention of state and federal betting restrictions.
The introduction of federal legislation marks a significant shift from the traditional US approach, where gambling regulation resides primarily at the state level. By explicitly classifying sports and casino-style event contracts as gambling, the bill would centralize oversight and limit an area many states have traditionally sought to control themselves.
Two bipartisan bills in 2026 — For the first time, both chambers of Congress are simultaneously advancing measures to classify sports prediction markets as gambling under federal law.
This move arises after increased media and legislative scrutiny of event contract platforms, some of which have sought Commodity Futures Trading Commission (CFTC) approval, arguing their products are financial derivatives rather than wagers. Congressional backers of the new bill say this distinction is misleading and could establish a backdoor to widespread online sports betting irrespective of state laws.
Industry Context
The rapid growth of prediction markets has coincided with broader legalization and normalization of sports betting since the Supreme Court struck down PASPA in 2018. However, prediction exchanges such as Kalshi and Polymarket have tested regulatory boundaries by seeking approval to list contracts for everything from political elections to NFL games. Some in the iGaming industry see these platforms as a new paradigm, blending financial and gambling products and appealing to a tech-savvy audience.
Recent research notes that prediction markets can enhance forecasting accuracy, but concerns over responsible gambling, market manipulation, and regulatory evasion have fueled calls for clarity. In 2022, PredictIt’s legal dispute with the CFTC spotlighted the lack of a coherent federal framework for event-based contracts, a gap lawmakers now appear intent to fill.
Regulatory Background
Historically, prediction markets operated in a regulatory gray zone. The Commodity Futures Trading Commission has the authority to oversee certain event contracts when they are structured as commodities. However, the CFTC has been resistant to authorizing sports-related contracts, citing the risk of enabling gambling under regulatory cover.
The federal definition of "gambling" under the Unlawful Internet Gambling Enforcement Act (UIGEA) largely excludes activities regulated as securities or commodities, which has enabled event contract platforms to argue for alternative regulatory treatment. This ambiguity has set the stage for legislative initiatives like the current bill, which outlines a clear prohibition on such contracts, regardless of their financial wrapper.
What Happens Next
With parallel bills now pending in both chambers, the proposed ban on sports prediction markets faces action during the 2026 legislative session. If passed, the act would impose a blanket prohibition on all federally registered platforms listing sports or casino-style event contracts. Industry stakeholders, regulators, and advocacy groups have already signaled intensive debate ahead, particularly regarding the delineation between financial products and gambling.
Sources
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