A new federal bill seeks to curb the expansion of sports-focused predictions in the US. Filed by Nevada Rep. Dina Titus, D-Nev., the proposal aims to prohibit federally regulated exchanges from listing event contracts tied to athletic competitions.
The legislation is the latest effort to redraw the boundary between derivatives regulation and state gaming law, intensifying a dispute over sports event contracts that has already drawn challenges from nine states.
Titus introduced the Fair Markets and Sports Integrity Act, HR 7477, on Tuesday. The measure was referred to the House Committee on Agriculture. Sen. Richard Blumenthal is expected to introduce similar legislation in the Senate.
The bill would amend the Commodity Exchange Act to prohibit federally regulated exchanges from listing contracts involving sporting events or casino-style gaming contracts.
“Prediction markets should not be able to circumvent state gaming laws,” Titus wrote in a statement. “Consumers deserve transparency, accountability, and protection against such predatory practices. That is why I introduced the Fair Markets and Sports Integrity Act to prevent entities from engaging in transactions involving sporting or casino-style event contracts.”
“These prediction markets are rapidly expanding around the world without the same guardrails that apply to licensed, regulated gaming operators.”
State regulators push back
Nevada regulators were among the first to challenge prediction market operators. In total, nine states have questioned whether contracts tied to game outcomes amount to unlicensed sports wagering.
States argue that authority over sports betting rests with them following the Supreme Court’s repeal of PASPA and that event contracts tied to athletic outcomes fall within state gaming jurisdiction rather than federal derivatives oversight.
Licensed sportsbooks must obtain state approvals, pay gaming taxes, and implement responsible gambling controls. Federally regulated exchanges operate under derivatives rules enforced by the Commodity Futures Trading Commission.
Under Chair Michael Selig, the CFTC has withdrawn prior memos against certain sports contracts and announced plans to craft a tailored regulatory framework. The agency is also expected to defend the legality of prediction markets in ongoing federal court disputes with states.
Rapid growth in sports contracts
The legislative activity follows a sharp increase in sports-focused trading. Since launching sports contracts roughly a year ago, Kalshi’s trading volume has risen more than 1,971.5% to $37.3 billion, with over 86.7% tied to sports markets.
In contrast, political and economic forecasting combined accounted for less than 5% of platform volume in the past year, despite formerly being the main markets on offer in these platforms.
Platforms including Crypto.com and Polymarket have argued in court that their products qualify as swaps subject to federal oversight that pre-empts state gaming regulation.
Major state-regulated sportsbooks and gaming operators such as FanDuel, DraftKings, Fanatics, PrizePicks, and Underdog now offer sports event contracts in some states, often through partnerships with marketplaces such as Kalshi.
The inclusion of casino-style contracts in HR 7477 extends the bill’s scope beyond athletic competitions. During an earnings call last year, Jay Snowden, CEO of PENN Entertainment, said prediction market platforms might explore offering contracts “on the next spin of a slot machine, the next hand of blackjack.”
Additional legislative efforts
Other bills at the federal and state levels also target prediction markets. Rep. Ritchie Torres introduced the Public Integrity in Financial Prediction Markets Act in early January, which would ban federal elected officials, political appointees, and executive branch employees from trading contracts related to government policy or political outcomes when they possess or could obtain nonpublic information through official duties.
In New York, multiple bills have been introduced, including proposals to restrict the use of prediction markets by public officers, require state licensing, and ban contracts tied to catastrophic events, politics, deaths, securities, and athletic events. One measure would impose safeguards such as a minimum age of 21, self-exclusion programs, deposit and spending limits, and a ban on credit card use.
In Hawaii, a House committee approved House Bill 2198, which would add trading on sports, games of skill and chance, politics, catastrophe, and death to the state’s definition of gambling. In Illinois, HB 5142 would add prediction markets on sports to the state definition of sports wagering, requiring licensure, while HB 5059 would ban sports prediction markets and impose limits on other event contracts.
Iowa lawmakers have proposed requiring prediction market platforms to pay $10 million for a license and remit 20% of revenue from event contract trading. In Connecticut, a governor-led measure would limit prediction market trading to individuals age 21 or older.
Original article: https://www.yogonet.com/international/news/2026/02/13/117600-house-bill-seeks-to-halt-sports-predictions-on-regulated-exchanges
