- Nevada’s Dina Titus filed a bill targeting prediction platforms like Kalshi and Polymarket that offer sports wagering.
- Passage looks unlikely given Republican control of the House and Trump administration support for these markets.
- Titus is simultaneously backing legislation to fix a new tax rule that hits even losing gamblers starting next year.
LAS VEGAS – Nevada Representative Dina Titus announced Tuesday she’s introducing legislation aimed at blocking prediction markets from offering sports-related contracts. The Fair Markets and Sports Integrity Act would prohibit platforms like Kalshi and Polymarket from facilitating wagers on sporting events or casino-style games.
These platforms are allegedly evading current state gaming laws, according to Titus, co-chair of the Congressional Gaming Caucus. She stressed in a statement that prediction markets shouldn’t be allowed to get around state gaming regulations. Customers should have transparency, accountability, and protection against these exploitative tactics.
For the industry, the bill arrives at a crucial moment. Mike Selig, the chair of the Commodity Futures Trading Commission, stated two weeks ago that he would be establishing new regulations that would permit contracts on athletic events. With Kalshi estimating over $1 billion in trades during this year’s Super Bowl alone—a 2,700% increase from the previous year – prediction market apps have become incredibly popular.
Political and Legal Challenges Ahead
The legislation, HR 7477, faces an uphill battle in Congress. Passage appears unlikely in the near term given that Titus serves as a Democrat while Republicans hold the House majority. The Trump administration has been supportive of prediction markets, especially after the president’s oldest son joined Kalshi as an adviser. Due to this, a gaming issue that was formerly nonpartisan has become a political battlefield.
Other gambling-related legislation is also pending in Congress, according to Titus. The FAIR BET Act, which attempts to repeal a contentious tax clause from Trump’s One Big Beautiful Bill, was recently co-sponsored by the congresswoman from Nevada and Representative Ro Khanna of California.
The measure aims to fix what critics are calling a phantom winnings tax. Under the current rule, even bettors who break even or lose money overall could still owe taxes starting in 2026. The FAIR BET Act would restore the ability for gamblers to fully deduct their losses against their winnings.
There are currently several legal lawsuits pending in state and federal systems, and industry analysts believe the Supreme Court will make a final decision. In the past, it has taken years to settle legal sports betting claims. It took almost three years to get Florida’s sports betting case all the way to the Supreme Court.
By requiring prediction markets to adhere to state-level licensing and age verification regulations, the bill would essentially handle them in the same way as Nevada sportsbooks and other regulated gaming businesses. Instead of navigating fifty distinct state systems, tech businesses have resisted this strategy, favoring a single federal regulatory framework.
Meanwhile, there is growing worry about insider trading on these sites. Markets offering contracts on events like halftime show performances have raised questions about how to prevent individuals with advance knowledge from exploiting the system. Clear criteria have not yet been established, however it is believed that the CFTC is considering new rules to address these problems.
