US Rep. Titus warns sports contracts threaten gambling laws
Nevada Representative Dina Titus (as depicted in the featured image) has called for stronger federal oversight of prediction market platforms such as Kalshi and Polymarket, arguing that they are operating sports and betting-style products outside traditional gambling regulations.
Speaking at the Conference on Gambling & Risk Taking at the Bellagio in Las Vegas, Titus said the gaming industry should stop “playing defence” as prediction market operators expand into sports-related contracts and other wagering products.
The issue centres on whether prediction market platforms should be subject to federal monitoring through the Commodity Futures Trading Commission (CFTC) or be regulated as gaming operators by state and tribal authorities. Regulators, sportsbooks, and tribal gaming groups have claimed that these platforms take use of gaps in commodity law to escape state gambling regulations, licensing, and taxation.
Regulation battle escalates
Gaming regulators have expressed worry about prediction markets because they fall somewhere between financial trading and regular sports betting. State-licensed sportsbooks must obey tight age verification, taxes, responsible gaming, and consumer protection regulations. Prediction market platforms, on the other hand, contend that they are governed by federal commodities law and controlled by the CFTC rather than state gaming authorities.
Many regulators perceive this as a regulatory gap because contracts for events like the Super Bowl resemble sports wagers. As billions of dollars continue to flow through platforms like Kalshi, some states have filed lawsuits and cease-and-desist orders, alleging that these products violate current gaming laws.
Key remarks from Bellagio conference
Dina Titus warned attendees at the Bellagio conference about prediction markets and their impact on regulated gaming. She said that the industry can no longer rely on silence to avoid government scrutiny since new betting technologies are emerging quicker than authorities can react.
Titus stated, “It used to be that gaming always played defence and kept its head down, hoping the federal government wouldn’t intervene, tax and regulate them. With the spread of gaming, new technology, and different threats to the industry, gaming can no longer afford to do that.”
At the heart of her concerns was consumer protection. Licensed sportsbooks are held to strict standards, from catching suspicious activity to blocking underage users and staying compliant with anti-money laundering laws. Titus pointed out that prediction markets do not always hold themselves to the same bar, which is a real problem when real money is involved. She also raised doubts about whether the CFTC actually has the expertise and resources to properly oversee these products. In her view, keeping sports betting fair is not a one agency job. It takes close cooperation between regulators, sportsbooks, and sports leagues working together, not around each other.
Fair Markets and Sports Integrity Act
Dina Titus has put forward the Fair Markets and Sports Integrity Act, aimed at prediction market platforms offering sports contracts. The bill would prevent CFTC regulated exchanges from listing products that look like sports betting or casino games unless they meet state licensing rules.
Supporters say this move is needed to keep regulated sports betting on solid ground, which is currently legal in 38 states and Washington, D.C. Their point is simple: every betting platform should be held to the same standards when it comes to taxation, consumer protection, and responsible gambling. No platform should get a free pass.
Tribal gaming operators are also on board, raising concerns that prediction markets could put existing tribal compacts and exclusive gaming agreements at real risk.
Titus frames the issue in terms of fairness, arguing that if two companies offer the same type of gaming product, they should be subject to the same restrictions. With increased worries about insider trading and market manipulation, this plan is gathering bipartisan support and has the potential to change how gambling and prediction markets are regulated.
Gambling tax reform
At the conference, Dina Titus also made a case for gambling tax reforms through the Fair Bet Act. The bill aims to restore the full deduction for gambling losses after federal changes brought it down to 90 per cent, a move that critics say ends up taxing players on money they never actually walked away with.
She is also pushing to raise the slot machine tax reporting threshold to $5,000, which would ease the burden on both casinos and players. In addition, she wants to remove the federal 0.25 per cent excise tax on sports betting, arguing that it is outdated and hard to justify today.
Nevada’s reputation
Nevada has long been regarded as the gold standard in gambling regulation, and it earned that reputation the hard way. Its stringent licensing system, hands-on oversight, and real commitment to public trust have set the standard for everyone else. According to Titus, individuals feel safe betting because they believe the system is fair, someone is always watching, and when rules are disobeyed, there are genuine consequences.
She warned that prediction markets could undermine trust by operating without many of the precautions necessary of regular sportsbooks. Titus contrasted Nevada’s regulatory system to sports referees, who work behind the scenes to ensure fairness. Sector executives say that innovation should take place within established regulations, while openness, monitoring, and licensing remain vital to the gambling sector.
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