House lawmakers advance bipartisan bill targeting federally regulated sports prediction markets

A bipartisan pair of House lawmakers has introduced legislation that would block federally regulated event contracts tied to sports competitions and casino-style games. The proposal, H.R. 9856, would amend the Commodity Exchange Act to prevent those contracts from being listed, cleared, or traded through registered entities if it becomes law.

The measure was introduced on July 22 by Rep. Steven Horsford, Democrat of Nevada, and Rep. Mark Amodei, Republican of Nevada. It has been referred to the House Committee on Agriculture and carries the title “Prediction Markets Are Gambling Act.”

Sports prediction markets face mounting pressure in Congress with bipartisan bill

The bill creates a new provision in the Commodity Exchange Act that would prohibit agreements, contracts, or transactions connected to sporting events, athletic competitions, or casino-style games from being offered through federally regulated exchanges.

Lawmakers spell out what falls within that definition. Casino-style games include slot machines, video poker, blackjack, roulette, craps, bingo, lotteries, traditional casino table games, and simulations of those activities. Sporting events are defined broadly to include live or virtual contests involving physical activity or skill, covering amateur, collegiate, and professional competition where participants’ performances determine an outcome or statistical result.

The legislation also says nothing in the proposal should override state laws regulating or prohibiting sports betting or casino-style gambling. Any restriction would apply only to contracts entered into after the measure takes effect.

The House proposal follows similar efforts in the Senate. Earlier this year, Sens. Adam Schiff and John Curtis introduced legislation with the same title that would also prohibit Commodity Futures Trading Commission-regulated exchanges from listing sports prediction contracts. Announcing that bill, Schiff said, “Sports prediction contracts are sports bets — just with a different name.”

Congressional attention has widened even further this month. Sen. Martin Heinrich and 11 other Senate Democrats recently urged committee leaders to strengthen pending digital asset legislation, arguing that prediction markets could undermine tribal gaming protections and state authority if additional safeguards are not added.

In their letter, the senators wrote, “We write with urgency regarding the continued lack of proper regulation over prediction markets and the resulting circumvention of state and Tribal gaming regulatory frameworks.” They warned that broader federal authority without explicit limits could weaken protections established under the Indian Gaming Regulatory Act and existing tribal-state gaming compacts.

Supporters of the various proposals argue that sports-related prediction markets function as gambling and should remain under state and tribal oversight rather than federal commodities regulation. Industry representatives, including prediction market operator Kalshi, have countered that regulated markets provide consumers with a legal alternative and that prohibiting them could drive activity to offshore platforms outside U.S. oversight.

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