Nevada Senators Push to Limit CFTC Prediction Market Role

Jonathan Rodriguez

Written by: Jonathan Rodriguez

Published: Fri Jul 10, 2026, 7:00 am ET

Read Time: 4 minutes

Nevada Senators Push to Limit CFTC Prediction Market Role

industry

Nevada Senators Jacky Rosen and Catherine Cortez Masto have joined a Democratic-led effort to limit the Commodity Futures Trading Commission's (CFTC) role in ongoing prediction market disputes. Their proposal aims to stop the agency from using federal funds to challenge state and tribal regulation of prediction markets.

The appropriations request comes as tensions continue to grow between federal regulators and states that view sports event contracts as gambling products. Nevada lawmakers argue that states should retain authority over gaming activities within their borders, especially when products closely resemble traditional sports betting.

The latest effort also reflects mounting concern among regulators that federally supervised prediction markets could bypass state gaming laws. That possibility has become a major issue for US online sportsbooks, licensed casino operators, and tribal gaming organizations.

Nevada Senators Seek to Protect State and Tribal Gaming Authority

Rosen and Cortez Masto joined a group of Senate Democratic colleagues in signing an appropriations request that would prevent the CFTC from using congressionally appropriated funds to sue states or tribes, or otherwise interfere with their efforts to enforce gambling laws against prediction market operators.

Rather than rewriting federal law, the proposal would limit how the agency spends taxpayer funds during the upcoming fiscal year. Supporters believe that approach protects existing state authority while Congress continues debating the future of prediction markets.

The senators argued that sports event contracts fall within the traditional scope of state gaming regulation instead of federal commodities oversight.

"Recent lawsuits filed by the CFTC against states regulating online prediction markets will only fuel a gambling public health crisis and interfere with states' and tribes' longstanding prerogative to regulate or even restrict gambling," the senators wrote.

The statement refers to the CFTC's legal actions seeking to prevent states such as Connecticut, Illinois, and Arizona from enforcing their gambling laws against federally regulated prediction market platforms.

Nevada officials also argue that federally regulated exchanges may avoid gaming taxes, responsible gambling requirements, licensing standards, and consumer protection rules that licensed operators must follow. As a result, many industry stakeholders believe this creates an uneven playing field for regulated US online sportsbooks.

Why Nevada is Leading the Fight Against Prediction Markets

Nevada has become one of the strongest opponents of prediction markets because of its long-established gaming regulatory framework. The state's gaming industry relies on strict licensing, consumer safeguards, and enforcement standards that have developed over decades.

State regulators have repeatedly challenged prediction market operators like Kalshi and Polymarket. Their argument is that sports event contracts closely resemble sports wagers regulated under Nevada law. Those legal efforts form part of a broader campaign to preserve state control over gaming oversight.

Nevada is legally disputing whether Kalshi can offer sports event contracts without a state gaming license. The state claims these contracts are illegal gambling, while Kalshi argues they are federally regulated commodities derivatives.

The debate has also spread beyond Nevada. Ohio recently intensified its own fight against prediction markets by taking enforcement action against Kalshi. Meanwhile, Ohio lawmakers advanced legislation addressing how such markets should operate within the state. 

Other states have also pursued lawsuits, cease-and-desist orders, or legislative proposals as questions over federal jurisdiction continue.

For Nevada, the issue extends beyond competition. Officials believe preserving state oversight protects consumers, maintains responsible gambling standards, and safeguards tax revenue generated through licensed operators. Those priorities remain central to the state's broader Nevada gambling policy.

Why This Matters for the Industry

The Democratic-led appropriations request signals growing congressional concern over the CFTC's role in sports prediction market disputes.

Though not a permanent law change, the proposal temporarily blocks federal funds from challenging state and tribal enforcement. That would give states greater flexibility while lawmakers continue examining the regulatory landscape.

The outcome could shape how prediction markets coexist with regulated sportsbooks across the country. Favored state authority could force prediction market operators to face licensing requirements similar to traditional sportsbooks.

Conversely, broad federal authority allows prediction markets to expand under commodities law, challenging the state-by-state gaming model.

For now, Nevada remains at the forefront of that debate. With Rosen and Cortez Masto backing CFTC funding restrictions, pressure builds for Congress to clarify sports prediction market regulations.

Jonathan Rodriguez
Jonathan Rodriguez

Jonathan is an avid basketball fan, and is often looking forward to the next upcoming NBA season when not checking players' stats during games. He also likes to keep his ears on the ground for the latest rumblings in the online casino industry.

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