Bipartisan Federal Bill Introduced to Ban Sports Prediction Markets

• Reps. Steven Horsford (NV-D) and Mark Amodei (NV-R) introduced a bill today to ban the sports prediction markets
• The legislation makes clear the Commodity Futures Trading Commission only oversees financial markets, not sportsbook-style gambling
• The legislation is a companion piece to a Senate bill introduced in March

Months after members of the Senate introduced their own bill to ban sports prediction markets, two members of Congress are doing the same.

Reps. Steven Horsford (NV-D) and Mark Amodei (NV-R) today introduced the “Prediction Markets are Gambling Act,” a piece of legislation to prohibit federally regulated prediction market operators from offering sports betting and casino-style gambling event contracts.

“This is about protecting jobs, protecting consumers, and protecting the integrity of our gaming industry,” Horsford said in a released statement. “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. They’ve already cost states over $1 billion in lost gaming tax revenue money that should have gone toward funding schools, roads, and critical programs. That’s why I introduced this bill to close the loophole, hold these companies to the same standard, and protect Nevadans.”

Companion Piece to Senate Bill

The legislation makes clear the Commodity Futures Trading Commission (CFTC) only oversees financial markets, not sportsbook-style gambling. The legislation prohibits sports and casino-style event contracts on federally registered exchanges while protecting legitimate event contracts such as those that hedge the weather or the economy.

Additionally, the bill includes a rule of construction that nothing in federal law preempts state or tribal authority over gaming, letting them remain free to set and enforce their own gaming policies.

“Gaming policy has long been the responsibility of states and tribes, not unelected federal regulators,” Amodei said. “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.”

The bill is a companion piece to a Senate bill introduced in March. Sens. Adam Schiff (D-Calif.) and John Curtis (R-Utah) introduced the Senate “Prediction Markets Are Gambling Act,” a bill to prohibit Commodity Futures Trading Commission registered entities to offer sports event contracts, or any contracts that resemble a sports bet or casino-style game.

“Sports prediction contracts are sports bets — just with a different name. And yet, these contracts have been offered in all fifty states in clear violation of state and federal law. Rather than enforce the law, the CFTC is greenlighting these markets and even promoting their growth. It’s time for Congress to step in and eliminate this backdoor which violates state consumer protections, intrudes upon tribal sovereignty, and offers no public revenue. I’m proud to partner with Senator Curtis to put a stop to these illegal markets,” Sen. Schiff said at the time in a press release.

AGA Lauds Prohibition Bill

American Gaming Association CEO and President Bill Miller praised the federal bill for reinforcing Congressional intent that states and tribes regulatory authority over sports betting and gaming.

“The AGA applauds Representatives Horsford and Amodei for introducing the companion legislation to Senators Schiff and Curtis. Together, these bills represent a bipartisan and bicameral effort to protect consumers, uphold state and tribal authority on regulating gaming, and stop so-called “prediction markets” from offering backdoor sports betting that is siphoning billions of dollars in tax revenue from local communities across America,” he said.