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Congress members introduce legislation banning sports event contract trading

Legal Writer

Publish Date: Jul 24, 2026

Fact checked by: Matt Moreno

Key Points

Sponsors says bill “prohibits sports and casino-style event contracts on federally registered exchanges”
Legislation also explicitly states that federal laws do not preempt state and tribal gaming statutes
Proposal is House companion to bill that already exists in the United States Senate

While courts are deliberating the legality of sports event contract trading on prediction market exchanges under current law, two members of the United States House of Representatives have signed onto settling the issue in Congress. Reps. Mark Amodei (Republican, Nevada-2) and Steven Horsford (Democrat, Nevada-4) have presented legislation that “closes a federal loophole” that they say has enabled the spread of sports event contract trading in the U.S.

Two members of the U.S. Senate introduced the same legislation in March 2026, but the House companion represents new momentum for the proposal. The legislation also comes when the U.S. Supreme Court could soon decide whether to wade into the matter.

Jayden Daniels, Washington Commanders NFL

(Photo by Kevin Sabitus/Getty Images)

Amodei, Horsford announce filing

A press release from Horsford’s office imparted the news of the House bill on Thursday. The statement begins by saying that the legislation’s purpose is to “stop federally regulated trading platforms from offering sports betting and casino-style gambling under the guise of financial products.”

The release adds that the measure “protects legitimate event contracts” as those connected to outcomes related to economic and weather events “remain untouched.” Most poignantly, the statement calls the preemption debate by saying that the bill “includes an explicit rule of construction that nothing in federal law preempts state or tribal authority over gaming.”

Disputes over preemption and state sovereignty have been at the center of dozens of legal disputes between state officials/tribal authorities and the Commodity Futures Trading Commission (CFTC)/exchange operators. This legislation could settle many of those questions but it may not do so before the U.S. Supreme Court weighs in on the status quo.

US Supreme Court could soon decide whether to take up prediction markets case

New Jersey officials have been embroiled in a lawsuit that Kalshi filed against them, which so far has gone well for the plaintiff. After the U.S. Third Circuit Court of Appeals affirmed injunctive relief against those officials in Kalshi’s favor in April, the defendants advised that they would appeal that decision to the U.S. Supreme Court.

The appellees secured a time extension to file their petition with the Supreme Court but now face an Aug. 4 deadline. The Supreme Court could share whether it will hear the appeal shortly thereafter.

In the absence of Congressional action like Amodei’s and Horsford’s bill, the Supreme Court decision on Kalshi’s injunction against New Jersey could start to definitively settle the issues at hand. The Supreme Court will merely be reviewing the Third Circuit’s decision to affirm the injunction, though, so that ruling could have some limitations.

As other members of the House stated, Congressional action has upside over continuing litigation to determine the permanent structure of sports event contract trading. However, litigation may be the more realistic instrument for creating that structure.

Congressional action preferable but unlikely

Congress could settle the legal questions of whether federal financial instrument laws preempt state and tribal gambling laws plus whether sports event contracts are “swaps” at any time with a series of votes. Securing those votes is the trick.

Proposals put forth by different members point to bodies that are divided on the issues related to sports event contracts on prediction market exchanges. For example, a bill that requires the exchanges and online gambling services to use facial scans to estimate age includes a provision that would make it easier for the CFTC to approve gaming-related contracts.

While Amodei and Horsford represent bipartisan sponsorship for the House companion bill and sponsors in the Senate also hail from both parties, Amodei and Horsford both represent Nevada. The lack of co-sponsors from other states suggests that support for their proposal may be low at the moment.

With the 2026 mid-term elections nearing and the future composition of Congress uncertain, time is running short to push Amodei’s and Horsford’s bill or its Senate companion. Even if Congress were to approve the measure, whether it would do so by a margin large enough to override a presidential veto is a separate question.

For these reasons, it appears that the Supreme Court is still the most realistic final adjudicator of sports event contracts. The court’s first opportunity to fill that role is pending.

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