Nevada Congressmen Push Bipartisan Measure to Classify Prediction Markets as Gambling

Representatives Steven Horsford and Mark Amodei introduced the Prediction Markets Are Gambling Act in July 2026 as a bipartisan effort to bring prediction platforms under the same regulatory umbrella that governs traditional sportsbooks across the United States. The legislation targets operations such as Polymarket and Kalshi, directing them to comply with state-level licensing, taxation structures, and consumer protection standards already in place for Nevada's regulated gaming industry.

The bill arrives amid growing competition between established sportsbooks and newer event-contract platforms that have expanded into sports-related wagers. Horsford and Amodei, both from Nevada, crafted the measure to close what supporters describe as a regulatory gap that allows certain platforms to avoid the oversight applied to casino-style offerings and sports betting products.

Core Provisions of the Legislation

Under the proposed rules, prediction market operators would lose the ability to offer contracts tied directly to sports outcomes or casino-style games on a nationwide basis. Platforms would instead need to secure state approvals, pay equivalent taxes, and implement the same responsible gaming measures required of licensed sportsbooks. The text emphasizes uniformity so that every entity accepting wagers on athletic events or chance-based games operates inside the existing framework that generates revenue for states including Nevada.

Supporters note that Nevada's sports betting market contributes substantial tax receipts each year, and the legislation seeks to prevent erosion of that base. The measure explicitly references labor unions and the American Gaming Association as backers who have raised concerns about competitive imbalances created when prediction platforms operate outside state licensing systems.

Support from Industry and Labor Groups

The American Gaming Association and multiple labor unions endorsed the bill shortly after its introduction, citing the need for consistent consumer protections and tax treatment. These organizations have tracked the growth of unregulated or lightly regulated platforms and argued that equal rules prevent market distortions. Their statements emphasize that licensed operators already meet strict standards for age verification, problem gambling resources, and financial reporting.

Those who have followed similar regulatory debates point out that states such as New Jersey and Pennsylvania have also built robust oversight systems for sports betting. The federal measure would encourage alignment across jurisdictions so that platforms cannot select the least restrictive environment while still serving customers nationwide. Proponents maintain that the approach protects state revenues without banning prediction markets outright.

Potential Effects on Nevada's Economy

Nevada relies on gaming taxes to fund education, public safety, and infrastructure projects. Any diversion of sports betting activity to platforms outside the state's regulatory reach could reduce those collections. The bill therefore includes provisions that preserve the ability of states to license and tax the activity, even when platforms are based elsewhere. Lawmakers from both parties described the legislation as a way to maintain Nevada's position as a leader in responsible gaming regulation.

Analysts tracking the sector have documented rising interest in event contracts among younger bettors who previously used traditional sportsbooks. The proposed rules would require those platforms to adopt the same player protections and tax obligations, creating a level field. State officials in Nevada have indicated they will continue monitoring federal developments while preparing to integrate any new requirements into existing licensing processes.

Next Steps in Congress

Following introduction, the bill heads to the House Financial Services Committee and the House Judiciary Committee for review. Committee staff have scheduled initial briefings with representatives from state gaming agencies and industry stakeholders. Observers expect hearings to examine how the measure interacts with existing federal statutes on interstate wagering and financial derivatives.

Similar discussions have taken place in state legislatures over the past year, where lawmakers weighed whether prediction contracts should fall under gambling commissions or securities regulators. The federal proposal seeks to settle that question at the national level for sports and casino-style products while leaving other event contracts subject to separate analysis.

Conclusion

The Prediction Markets Are Gambling Act represents a targeted effort by Nevada's congressional delegation to align emerging platforms with long-standing state regulatory systems. By requiring licensing, taxation, and consumer safeguards equivalent to those applied to sportsbooks, the legislation aims to protect state revenues and maintain consistent standards nationwide. As the bill advances through committee review, stakeholders from gaming associations, labor groups, and regulatory bodies will continue to provide input on its implementation timeline and scope.