Published on: March 6, 2026, 05:15h.
Updated on: March 6, 2026, 05:15h.
- A New Mexico Congressman proposes an amendment to the Farm Bill to prevent prediction market operators from offering sports contracts.
- He argues that prediction markets are circumventing both state and tribal regulations.
- This amendment receives support from tribal gaming organizations.
Representative Gabe Vasquez (D-NM) aims to utilize the Farm Bill to potentially ban prediction market operators from providing financial products that replicate conventional sports betting.
While this might seem like an unconventional strategy, Vasquez appears to have a valid point, as the Commodities Futures Trading Commission (CFTC)—the federal authority overseeing prediction markets—primarily regulates agricultural derivatives. Some critics contend this is indeed the core duty of the CFTC.
Regarding the Vasquez amendment, the House Agriculture Committee has thus far prevented a vote; however, the congressman remains steadfast in his efforts.
“Let’s face it—permitting companies to sidestep state and Tribal gambling regulations by referring to sports wagers as ‘event contracts’ or ‘prediction markets’ is a blatant affront to Tribal sovereignty, and it undermines revenue for New Mexico Tribes that adhere to the rules,” he asserted in a statement.
New Mexico prohibits online sports betting, yet prediction markets have capitalized on their federally regulated status, offering sports event contracts in numerous states where traditional betting is not allowed. Vasquez claims he’s secured a commitment from House Agriculture Committee Chairman Glenn Thompson (R-PA) for future discussions on the amendment.
Support for Vasquez’s Amendment from Tribal Casino Groups
Although the Vasquez amendment faces temporary roadblocks, there may be future momentum, particularly as the scrutiny of prediction markets gains bipartisan attention.
It is evident that tribal casino operators, longstanding critics of prediction markets, endorse the Vasquez amendment. Indian Gaming Association (IGA) Chairman David Bean and James Siva, the chair of the California Nations Indian Gaming Association (CNIGA), have expressed their support.
Siva, representing a coalition of tribal gaming interests in California, emphasizes that both Congress and the Supreme Court have consistently acknowledged that states govern gaming regulations, including those for sports betting.
“Both Congress and the U.S. Supreme Court have long upheld this principle,” he stated. “Yet currently, so-called prediction markets are attempting to exploit loopholes in federal law to provide nationwide sports betting without necessary licensing, oversight, or consumer protections, even in states like California where sports betting has been explicitly banned and overwhelmingly rejected by voters. Representative Vasquez’s amendment would reinforce state authority, protect tribal sovereignty, and safeguard consumers.”
Prediction Markets Create Unlikely Alliances
Interestingly, prediction markets are emerging as a point of consensus across party lines. This was evident earlier today when Rep. Blake Moore (R-UT) and Rep. Salud Carbajal (D-CA) introduced the Event Contract Enforcement Act.
This legislative proposal is not aimed at abolishing the event contracts sector but instead seeks to prohibit sports derivatives and contracts related to terrorism, assassination, and war.
Their bill coincided with news of the Vasquez amendment, following a proposal from several Democratic senators looking to curb insider trading within prediction markets—sparked by recent evidence of such trades linked to U.S. engagement in Iran and Venezuela.