A Nevada member of Congress is taking aim at a fast-growing corner of the financial markets that looks a lot like sports betting.
Rep. Dina Titus, D-Nev., on Monday (February 23) rolled out the “Fair Markets and Sports Integrity Act,” a bill designed to stop federally regulated commodities exchanges from offering contracts tied to sporting events or casino-style games. The proposal was sent to the House Committee on Agriculture, which has jurisdiction over the Commodity Exchange Act.
If approved, the measure would change that law to make it illegal for registered exchanges and similar entities to list, facilitate or clear trades connected to sports competitions or gambling-style games.
The bill’s language is sweeping. It would bar any registered entity from offering “any agreement, contract, or transaction that is based on, references, or derives its value from, or otherwise involves” a sporting event or athletic competition, or a casino-style game.
Lawmakers spelled out that a “casino-style game” would include anything typically found in a casino or gambling venue, including slot machines, blackjack, roulette, craps, poker, bingo and lotteries. The definition also extends to digital or simulated versions of those games.
Sporting events are defined just as broadly. The text covers live, simulated or virtual competitions involving physical or mental skill. That includes situations where individuals or teams compete and an outcome, score or statistical measure determines the result. Amateur, college and professional sports would all fall under the prohibition.
Titus proposes change to the Commodity Exchange Act via the Fair Markets bill
At its core, the legislation would insert a new subsection into Section 4c of the Commodity Exchange Act. The addition would make clear that exchanges registered under the Act cannot offer or process these kinds of contracts.
In practical terms, the bill targets prediction-style markets that allow traders to take positions on the outcome of games, often structured as commodities contracts rather than traditional bets. Platforms such as Kalshi have argued that their event contracts fall under federal commodities law, not state gambling rules.
The debate has already spilled into court. A federal judge in Nevada recently ruled that a dispute involving Kalshi and state regulators should be sent back to state court, reinforcing the ongoing tug-of-war over who has authority to police these markets. Titus has also previously raised concerns about prediction markets in separate legislation, including efforts that tighten oversight in wider federal bills.
Supporters of tighter rules say these contracts blur the line between regulated financial products and sports wagering. Critics counter that prediction markets can serve legitimate hedging or information functions.
The new bill does not spell out specific penalties but would embed the prohibition directly into federal commodities law.
Featured image: Dina Titus via X
