Dina Titus Bill Takes Aim at Sports Contracts on Prediction Markets

Nevada Representative Dina Titus has introduced federal legislation to stop prediction market platforms from offering contracts linked to sporting events and casino-style outcomes. This move has sparked a heated debate about how to regulate these products.

Titus Pushes Crackdown on Sports-Linked Prediction Contracts

The proposed Fair Markets and Sports Integrity Act would ban regulated exchanges from enabling trades connected to sports contests or gambling-like events when these contracts look like wagers overseen by state authorities. Titus claims that some companies are taking advantage of gaps between federal commodities rules and state gaming laws to offer products that work like sportsbooks.

In a statement on social media, the Las Vegas Democrat said states should have oversight of these platforms. She argued that customers deserve clear protections and accountability, saying her bill aims to stop what she called harmful practices linked to sports and casino-style event trading.

Her action follows legal challenges facing prediction market operators like Kalshi and Polymarket in several states. Courts are deciding if contracts based on game outcomes fall under the Commodity Futures Trading Commission‘s (CFTC) control or if states should regulate them as sports betting.

States Battle Prediction Markets as Trading Hits Record High

In Massachusetts, a state court chose not to stop an order that limits Kalshi’s reach to local users for sports-related contracts. Judges there decided that while the federal government oversees the platform, states still have a lot of power to control gambling within their borders. Similar fights are happening in Nevada, Maryland, New Jersey, and California, with different rulings making things even less clear.

Even with these legal problems, prediction markets keep growing fast. Kalshi’s leaders shared that trading during this year’s Super Bowl went over $1 billion in just one day, which is a big jump from last year. This big increase has caught the eye of groups that care about responsible gambling. They are warning that people might not see the dangers that come with products for trading on events.

Titus’ plan has caused backlash at home. Several Nevada voters have blamed her for protecting the state’s strong casino business, pointing to campaign money from big gaming firms. People on social media reacted to her news with doubt and anger, with critics questioning why she did it.

Titus has denied these accusations, describing the bill as a way to defend state-run gaming systems and protect consumers. Now that her bill is in front of a House committee, the fight over prediction markets looks set to move from courts to Congress.