Nevada lawmakers introduce federal bill to ban sports event contracts
Nevada lawmakers introduced federal legislation in July that would ban sports-related event contracts on federally regulated prediction market platforms. The bill seeks to preserve Nevada's state-level gaming regulatory authority over sports wagering. Details on sponsors, provisions, and procedural status remain sparse in the initial reporting. The legislation surfaced around the Racing and Gaming Conference at Saratoga.
Kalshi and Polymarket now face coordinated federal threats from both chambers of Congress. The Nevada-led House bill pairs with a Senate companion to void sports contracts nationwide before any court settles state preemption. For traders, existing sports positions risk forced closings if Congress acts, with no platform guaranteeing grandfathering. Kalshi already defends five state fights; adding a two-chamber congressional defense multiplies the strain. DraftKings and Robinhood face identical exposure if the House and Senate align on final language.
The CFTC's June proposal to allow sports contracts may be overridden before it becomes final. Either platform that builds credible compliance first may shape any ban's final form. Tribal interests are lobbying alongside lawmakers, adding sovereignty arguments that speed political momentum over administrative rulemaking. Either chamber could hold hearings that force platforms to disclose internal data on trading volumes and user locations they have fought to keep private.