Nevada Lawmakers Introduce Bill to Regulate Prediction Market Betting Contracts

U.S. Representatives Steven Horsford and Mark Amodei introduced the bipartisan Prediction Markets Are Gambling Act to prohibit platforms such as Polymarket and Kalshi from offering sports betting contracts or casino-style games across the country, and the measure requires these operations to follow the same licensing, tax, and consumer protection standards that apply to state-regulated sportsbooks in Nevada and other jurisdictions.

The legislation addresses concerns that unregulated prediction markets create direct competition with established gaming venues while avoiding the revenue contributions and oversight mechanisms that support state budgets, and it draws support from labor unions along with the American Gaming Association during a period when traditional sportsbooks generate significant tax income for Nevada.

Details of the Proposed Legislation

The bill defines prediction market contracts tied to sports outcomes or casino-style wagers as gambling activities, which means operators must obtain state licenses, pay applicable taxes, and implement the same responsible gaming tools required of licensed sportsbooks, and it applies nationwide to close gaps that currently allow certain platforms to function outside those frameworks.

Under the proposed rules, platforms would face restrictions on event contracts involving athletic competitions or games of chance, whereas they could continue offering contracts on elections, economic indicators, and other non-gaming topics that fall outside the new definitions, and the distinction aims to separate speculative financial products from direct competition with regulated betting markets.

Sponsors and Political Backing

Representatives Horsford, a Democrat, and Amodei, a Republican, both from Nevada, co-sponsored the measure to protect state interests in gaming revenue while establishing uniform national standards, and their joint effort reflects the economic importance of sports betting to Nevada's budget through taxes collected from licensed operators.

Labor unions representing workers in the gaming sector and the American Gaming Association have endorsed the legislation because it seeks to level the regulatory field, and these groups have highlighted how licensed sportsbooks contribute to employment, infrastructure, and public programs in states that permit them.

Impact on Nevada and State Revenues

Nevada relies on taxes from regulated sportsbooks as a major revenue stream, and the bill would extend similar tax obligations to prediction market operators that currently handle sports-related contracts without those payments, and observers note this change could preserve funding streams that support education, public safety, and other state priorities.

State officials have tracked growth in the regulated sports betting sector over recent years, and the introduction of the legislation in July 2026 occurs amid ongoing discussions about how emerging platforms affect market share and tax collections across multiple jurisdictions.

Proponents argue that consistent rules across state lines would reduce regulatory arbitrage, and the measure includes provisions for enforcement through federal coordination with state gaming commissions to monitor compliance by large online platforms.

Industry Context and Platform Responses

Prediction market operators have expanded their offerings in recent years to include contracts on sports events and other outcomes, and the bill would require those operators to restructure or cease such activities unless they secure the same licenses demanded of traditional sportsbooks, and this shift would alter business models that currently operate with lighter oversight.

Traditional gaming companies have pointed to differences in tax rates and consumer protections as sources of uneven competition, and the legislation responds to those points by mandating equivalent standards nationwide without banning prediction markets entirely from non-gaming contracts.

Consumer Protection and Regulatory Alignment

The act incorporates requirements for age verification, self-exclusion programs, and problem gambling resources that already apply to licensed sportsbooks, and these measures would extend to prediction market users who place sports-related bets, and state regulators would gain authority to audit and enforce these standards on platforms serving U.S. customers.

Existing federal and state laws already distinguish between certain forms of prediction contracts and gambling, yet the new bill clarifies those lines specifically for sports and casino-style events, and it provides a framework for consistent application across all 50 states and the District of Columbia.

Conclusion

The Prediction Markets Are Gambling Act represents a targeted effort by Nevada's congressional delegation to bring prediction market operators under the same regulatory umbrella that governs established sportsbooks, and the measure's progress will depend on committee review, hearings, and potential amendments as lawmakers consider its effects on innovation, revenue, and consumer safeguards. According to reporting from the Nevada Independent, the bill has already attracted attention from both gaming industry stakeholders and state revenue officials who track sports betting performance. Further developments in Congress will determine whether the legislation advances and how platforms adjust their contract offerings in response.