The latest federal effort to stop prediction markets from offering sports contracts comes from a bipartisan pair of Nevada lawmakers.
Rep. Steven Horsford (D-NV) on Wednesday introduced HR 9856 with cosponsor Rep. Mark Amodei (R-NV). Known as the Prediction Markets Are Gambling Act, the bill would amend the Commodity Exchange Act to prohibit federally regulated prediction markets from offering casino-style games or sports event contracts.
The bill was referred to the House Committee on Agriculture, which heard testimony on prediction markets earlier this week. It is unclear when the committee could take up the legislation, as Congress is about to break for summer recess.
Language of prediction markets bill
The bill seeks to ensure any and all gaming-related markets are covered under the prohibition by defining both “casino-style game” and “sporting event or athletic competition.”
Casino-style game is defined as “any game traditionally found in a casino, including slot machine games, video poker, blackjack, roulette, craps, any other casino-style table game, bingo, lottery, and any simulation of any of those games.”
Sporting event or athletic competition is defined as “any live or virtual contest involving physical activity or skill in which individuals or teams compete and performance determines an outcome or statistical result, including amateur, collegiate, and professional sports.”
The bill also specifies that the act cannot be “construed to preempt any State law or rule that regulates or prohibits any agreement, contract, or transaction relating to any sporting event or athletic competition or any casino-style game.”
Protecting Nevada’s casinos
Both sponsors represent Nevada, a state that has taken one of the country’s hardest lines against sports predictions.
The Nevada Gaming Control Board made its position clear early on: offer prediction markets and risk your Nevada gaming license. The policy prompted FanDuel to surrender its license and DraftKings to withdraw its dormant application last November.
That stance has effectively kept Las Vegas’ largest casino operators, including Caesars and MGM, out of the prediction market business, even as their sportsbooks compete directly with prediction markets in legal sports betting states.
