Bipartisan Legislation Targets Prediction Markets Operating Sports Contracts Nationwide

Representatives Steven Horsford and Mark Amodei introduced the Prediction Markets Are Gambling Act as a bipartisan measure designed to bring platforms such as Polymarket and Kalshi under the same regulatory framework that governs state-licensed sportsbooks across the country. The proposal would bar these prediction market operators from listing sports betting contracts or casino-style games on a nationwide basis while requiring them to comply with existing rules on licensing, taxation, and consumer safeguards that apply to traditional gaming venues.

Observers note that the legislation arises at a time when prediction markets have expanded their offerings into areas previously reserved for state-regulated operators, creating direct competition with established sportsbooks that generate substantial revenue for Nevada and several other states. Data from industry reports indicate that state sportsbooks contribute millions in tax revenue annually, and lawmakers from both parties have highlighted the need for consistent standards to protect those streams while maintaining oversight on all forms of wagering activity.

Key Provisions of the Proposed Measure

The bill outlines specific prohibitions that would prevent prediction platforms from facilitating contracts tied to sporting events or games of chance, shifting those activities exclusively to entities already authorized under state gaming laws. Sponsors have stated that the intent centers on leveling the playing field so that every operator offering similar products meets identical requirements for age verification, responsible gaming measures, and tax obligations that currently bind Nevada-based and other state-regulated sportsbooks.

Analysts tracking federal and state gaming policy point out that the measure also addresses concerns raised by labor unions representing workers in the gaming sector along with the American Gaming Association, both of which have voiced support for the legislation. These groups have cited potential impacts on employment and state budgets when unregulated or lightly regulated platforms capture market share without contributing to the same regulatory and tax systems.

Background on Prediction Market Expansion and State Interests

Prediction markets have grown rapidly in recent years by allowing users to trade contracts on a wide range of outcomes, including certain sports-related events, and this growth has drawn attention from regulators and industry stakeholders alike. In Nevada, where gaming revenue supports significant portions of state funding and employment, officials have monitored the rise of these platforms as they intersect with traditional sportsbook operations that remain a cornerstone of the local economy.

Those who have followed similar legislative efforts note that the bipartisan sponsorship from Horsford, a Democrat, and Amodei, a Republican, reflects shared priorities around consumer protection and revenue stability. The legislation would extend nationwide reach rather than limiting its scope to individual states, aiming to create uniform standards that prevent platforms from operating sports or casino-style products outside existing regulatory structures.

Industry data compiled by the American Gaming Association shows that state-regulated sportsbooks have seen consistent growth in handle and tax contributions over multiple years, underscoring why states such as Nevada continue to emphasize the importance of maintaining oversight on all competing forms of betting activity. The proposed act would require any platform offering prohibited contracts to restructure or cease those operations to avoid enforcement actions at the federal level.

Stakeholder Positions and Implementation Considerations

Labor organizations have expressed backing for the bill because it seeks to preserve the regulatory environment that supports unionized positions within licensed gaming facilities. The American Gaming Association has similarly endorsed the measure, citing the need for all operators in the sports betting space to operate under comparable rules that include licensing fees, tax payments, and consumer protection protocols already enforced at the state level.

Officials involved in drafting the legislation have indicated that enforcement would fall to federal agencies working in coordination with state gaming commissions, ensuring that platforms cannot circumvent rules by operating across state lines. This approach mirrors other federal efforts to standardize aspects of the gaming industry while leaving day-to-day licensing authority with individual states that already oversee sportsbooks.

Experts tracking the sector have observed that similar regulatory adjustments in other jurisdictions have led platforms to adjust their product offerings or seek new licensing pathways to remain compliant. The Prediction Markets Are Gambling Act would follow that pattern by clarifying that sports contracts and casino-style games fall outside the scope of prediction market exemptions currently in place.

Conclusion

The introduction of this bipartisan legislation marks a notable development in the ongoing evolution of federal policy toward prediction markets and their intersection with established sports betting frameworks. By focusing on nationwide prohibitions and alignment with state-regulated standards, the measure addresses revenue, consumer protection, and competitive concerns raised by multiple stakeholders in the gaming sector. Observers will continue to monitor the bill's progress through Congress as it moves forward for further consideration and potential amendments.