Nevada Lawmakers Introduce HR 9856 to Ban Sports Prediction Contracts on Federally Regulated Platforms

Key Takeaways

• HR 9856 Filed: Rep. Steven Horsford and Rep. Mark Amodei introduced the Prediction Markets Are Gambling Act on Wednesday to amend the Commodity Exchange Act.
• Senate Companion: Sens. Adam Schiff, John Curtis and Catherine Cortez Masto introduced the matching measure.
• Specific Definitions: The bill defines “casino-style game” and “sporting event or athletic competition” to close regulatory gaps.
• State Authority Upheld: The legislation explicitly does not preempt any state or tribal laws on gaming contracts.

HR 9856 would prohibit federally regulated prediction markets from offering sports event contracts or casino-style games. The bipartisan bill places those activities under state and tribal gaming authority. As reported by Legal Sports Report and World Casino News, the effort comes from Nevada lawmakers protecting the state’s strict regulatory line.

The House bill was referred to the House Committee on Agriculture. Congress is about to break for summer recess. Timing on any vote remains unclear.

Bill Language Closes Loopholes on Gaming Contracts

The Prediction Markets Are Gambling Act defines key terms to ensure coverage. Casino-style game means any game traditionally found in a casino, including slot machine games, video poker, blackjack, roulette, craps, any other casino-style table game, bingo, lottery, and any simulation of any of those games.

Sporting event or athletic competition covers any live or virtual contest involving physical activity or skill in which individuals or teams compete and performance determines an outcome or statistical result, including amateur, collegiate, and professional sports.

These definitions target the exact products now offered on CFTC platforms. The bill states it cannot be construed to preempt any state law or rule that regulates or prohibits any agreement, contract, or transaction relating to any sporting event or athletic competition or any casino-style game. Data from the sources shows this language is deliberate.

Nevada’s Hard Line Against Prediction Market Operators

Both sponsors represent Nevada, which has taken one of the country’s hardest lines against sports predictions. The Nevada Gaming Control Board made its position clear early on: offer prediction markets and risk your Nevada gaming license.

That policy prompted FanDuel to surrender its license. DraftKings withdrew its dormant application last November. The stance has kept Las Vegas largest casino operators, including Caesars and MGM, out of the prediction market business.

Sportsbooks from those same companies compete directly with prediction markets in other legal states. The federal bill reinforces the Nevada Gaming Control Board’s approach at national scale. It signals that Nevada intends to defend its casino model against CFTC-sanctioned alternatives.

Bipartisan Push and Legislative Next Steps

Rep. Steven Horsford introduced HR 9856 with cosponsor Rep. Mark Amodei. After first reference the lawmakers are Horsford and Amodei. The Senate companion was introduced by Sens. Adam Schiff, John Curtis and Catherine Cortez Masto.

The House Committee on Agriculture heard testimony on prediction markets earlier this week. No schedule exists for committee action. Summer recess adds further delay before any progress.

World Casino News notes the legislation seeks to place sports prediction contracts firmly under state and tribal gaming authority. Legal Sports Report confirms the referral and the unclear timeline. The sources align on every named principal, bill number and procedural detail.

What the Coverage Underemphasizes

The reporting captures the bill text, Nevada motivations and operator exits. It spends less time on downstream effects for suppliers and data platforms that must build compliant infrastructure across fragmented rules. From the supplier side, this kind of federal-state tension slows platform integrations and raises compliance costs without clear timelines.

Prediction markets and sportsbooks price overlapping outcomes. When one channel faces outright prohibition in key jurisdictions the competitive data sets shift. The sources do not quantify those shifts or address how tribal gaming compacts might absorb or reject the new federal boundary.

The Sovereignty Calculus for Operators

This bill highlights the persistent split between CFTC contract treatment and state gaming control. Operators and suppliers should map their product roadmaps against both federal proposals and state enforcement patterns before committing significant development resources. Clarity on which contracts survive will shape 2027 planning more than any single legislative hearing.

SCCG advisory work on gaming authority questions can help stakeholders model the practical outcomes. The data so far favors caution over rapid expansion into contested categories.