Bipartisan Legislation Seeks to Restrict Prediction Market Platforms on Sports and Casino Events

Representatives Steven Horsford of Nevada and Mark Amodei of Nevada introduced the Prediction Markets Are Gambling Act in July 2026 as a direct response to expanding offerings on federally registered platforms. The measure targets event contracts tied to sports outcomes and casino-style games on sites such as Kalshi and Polymarket, and it would bar those platforms from listing such contracts going forward. Sponsors designed the bill to address what they describe as a regulatory gap that currently allows certain prediction markets to operate without state or tribal gaming oversight.

The legislation arrives as the House counterpart to an earlier Senate proposal, and it carries endorsements from the American Gaming Association along with multiple labor unions. Proponents argue that the bill would redirect tax revenue streams back to states and tribes while maintaining consumer protections already embedded in existing gaming frameworks. Estimates attached to the proposal suggest states stand to recapture more than one billion dollars annually in revenue currently flowing outside traditional channels.

Core Provisions of the Proposed Act

The bill defines sports and casino-style event contracts as prohibited categories for platforms registered with federal agencies, and it directs those platforms to remove such offerings within a specified compliance window. Language in the measure emphasizes state and tribal authority over gaming activities, which means operators would need to navigate individual jurisdiction rules rather than relying on a single federal registration. Horsford and Amodei framed the text as a clarification rather than an expansion of regulatory reach, noting that current interpretations have allowed certain contracts to bypass established oversight structures.

Observers note that the proposal stops short of banning all prediction market activity and instead draws a line around contracts that mirror traditional sports betting or casino games. This distinction leaves room for markets focused on economic indicators or weather events, provided those contracts do not cross into the newly restricted categories. The bill also includes reporting requirements that would force platforms to disclose contract types and trading volumes to state regulators upon request.

Timing and Legislative Context in Mid-2026

Introduction of the measure occurred during a period when several states had already begun reviewing their own approaches to event contracts, and the federal proposal seeks to create a uniform boundary while preserving local control. Lawmakers cited ongoing discussions at the state level as evidence that a patchwork of rules was emerging, and they positioned the Prediction Markets Are Gambling Act as a tool to prevent forum shopping by operators. July 2026 filings show the bill moving through the House Financial Services Committee, where staff have scheduled initial hearings for later in the month.

Supporters from the American Gaming Association have pointed to existing state licensing systems as ready-made mechanisms for handling any contracts that might shift under the new rules, and they have provided written statements detailing how current frameworks already address consumer safeguards and tax collection. Labor unions backing the legislation have emphasized job protections tied to regulated gaming facilities, arguing that unregulated event contracts could divert activity away from licensed venues that employ union members.

Revenue and Oversight Considerations

Figures presented alongside the bill estimate that more than one billion dollars in potential state tax collections have been affected since certain prediction platforms began offering sports-related contracts. Sponsors contend that redirecting these activities through state and tribal channels would restore those revenues without creating new administrative burdens, because licensing and auditing processes already exist in most jurisdictions. The proposal also requires platforms to maintain records that state auditors could access, which would allow verification of contract classifications and settlement procedures.

Those who have examined similar legislation in the Senate note that the House version mirrors many of the same definitions and enforcement mechanisms, which could streamline conference negotiations if both chambers advance their bills. Committee staff have indicated that technical amendments may address implementation timelines and the treatment of existing open contracts, yet the core prohibition on sports and casino-style offerings remains unchanged in the current draft.

Stakeholder Positions and Next Steps

The American Gaming Association has released statements supporting the measure and has linked its position to broader efforts aimed at maintaining regulatory consistency across jurisdictions. Union representatives have echoed those comments while highlighting employment impacts at regulated facilities. Platform operators have not issued formal responses in the immediate days after introduction, though analysts expect comments to surface during the upcoming committee hearings.

House leadership has not yet scheduled a floor vote, and procedural steps including markup sessions and possible amendments remain ahead. If the bill clears the committee and reaches the floor, its companion status with the Senate measure could influence the pace of consideration in both chambers. Observers tracking the July 2026 calendar point to the alignment between House and Senate versions as a factor that may accelerate movement once hearings conclude.

Conclusion

The Prediction Markets Are Gambling Act represents a targeted effort to redefine the scope of federal registration for certain event contracts while reinforcing state and tribal roles in gaming oversight. Sponsors have tied the proposal to revenue recovery, consumer protection, and regulatory clarity, and they have secured support from established gaming industry groups and labor organizations. As the legislation advances through committee review in July 2026, stakeholders continue to examine its definitions, compliance requirements, and potential effects on existing market activity.