Nevada lawmakers have opened another federal route to stop sports event contracts from operating as prediction markets. A new House bill would ban sports and casino event contracts while preserving markets tied to weather and economic data.
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Nevada courts have already forced prediction market platforms to limit sports contracts in the state. The latest bill would apply a national ban through federal law rather than relying on separate state cases.
“A wager on the Super Bowl does not become a financial product simply because it is offered through a trading app,” a press release said.
Under the proposal, federally regulated exchanges could still list contracts based on weather, economics and other non-gambling events. Sports outcomes and casino-style markets would no longer qualify.
Lawmakers also want to settle a legal question behind disputes between prediction markets and state gambling regulators. The bill says federal law does not override state or tribal gaming authority.
“States and tribes remain free to set and enforce their own gaming policies,” the bill summary said.
Prediction market operators often argue that Commodity Futures Trading Commission oversight blocks state intervention. State regulators argue that sports contracts function like wagers and must follow local gambling laws.
“This bipartisan bill closes a federal loophole that allows sports betting to masquerade as financial trading and ensures legitimate event contracts remain under the CFTC’s jurisdiction,” Rep. Amodei said in a statement.
Horsford also supports separate legislation that would stop federal politicians and officials from trading prediction contracts with insider information.
“This is about protecting jobs, protecting consumers, and protecting the integrity of our gaming industry,” Rep. Horsford said in the release. “Nevada has always been the gold standard for gaming regulations. These companies are exploiting a federal loophole that allows them to effectively sidestep state oversight that every other legal sportsbook must follow.”
Congress now has several prediction market bills under review, though passage remains uncertain.