Nevada Authorities Push New Bill To Ban Prediction Markets

Nevada Representatives Steven Horsford and Mark Amodei have introduced the bipartisan Prediction Markets Are Gambling Act, a bill that will prevent federally regulated prediction market platforms from offering sports betting and casino-style event contracts.

The proposal would maintain prediction markets around financial, economic and weather events while blocking products believed to function like traditional sports betting by authorities.

This legislation closely follows a similar Senate proposal introduced by Senators Adam Schiff, John Curtis and Catherine Cortez Masto. It aims to preserve state and tribal authority over gambling while keeping sports betting under state gambling laws.

Proposal to close regulatory gaps without affecting legitimate markets

A central objective of the bill is to prevent CFTC-regulated exchanges from listing or facilitating sports and casino-style contracts. 

Supporters argue that some prediction market operators have relied on federal commodities laws to offer products that resemble sports betting while avoiding state licensing, consumer protection and taxation requirements.

The legislation retains the CFTC’s authority over legitimate commercial risk-management products, but mandates regulators to focus on these tools instead of sports bets framed as futures. It also states that federal commodities law is not intended to override existing state and tribal gambling regulations. 

In essence, the bill confirms that gambling oversight is primarily the responsibility of state governments and tribal authorities that regulate licensed gaming markets.

Nevada lawmakers argue state regulated sportsbooks face unfair competition

Since the repeal of the Professional and Amateur Sports Protection Act in 2018, states have developed their own regulated sports betting markets with licensing standards, anti-money laundering controls, financial requirements and consumer protection measures.

Lawmakers argue that prediction market platforms operate under a different federal framework that allows them to avoid many of these obligations while offering products similar to sports betting.

Nevada has become one of the strongest voices in the debate because gaming remains one of the state’s largest industries. Casinos, sportsbooks, hotels, entertainment businesses, technology providers and regulators all depend on the sector, supporting thousands of jobs and generating tax revenue.

Supporters of the legislation also warn that if consumers move from licensed sportsbooks to prediction markets, states could lose tax revenue that fund education, healthcare, infrastructure and responsible gambling programmes.

Nevada courts have ruled against certain prediction market operations, reinforcing the state’s position that contracts tied to sporting events should fall within gambling regulation.

Congressional support signals continued scrutiny of prediction markets

Lawmakers say the proposal is intended to remove uncertainty by establishing a legal distinction between legitimate prediction markets and gambling products.

Supporters believe legislation offers a faster solution than prolonged court battles or regulatory disputes, while preserving valid commercial event contracts and eliminating what they describe as a loophole in existing federal law.

Although the bill’s future is uncertain, bipartisan backing in both the House and Senate suggests that pressure on sports prediction markets is unlikely to ease. Even if this proposal is not passed into law, it will shape future debates about the boundaries of federal commodities and state gambling regulations.