Congresswoman Dina Titus of Nevada has reignited discussions surrounding federal oversight of prediction markets involved in sports and casino-related bets, contending these platforms operate beyond the reach of state and tribal regulations overseeing legal gambling activities.
During a speech on Tuesday at the 19th Conference on Gambling & Risk Taking held at Bellagio in Las Vegas, Titus, co-chair of the Congressional Gaming Caucus, emphasized the gaming sector must become proactive in response to the proliferation of new betting technologies and products.
“Historically, the gaming industry has primarily played defense, hoping to avoid federal scrutiny, taxation, and regulation,” Titus remarked. “Given the advancements in gaming, evolving technology, and emergent threats, the industry must no longer adopt this passive stance.”
The International Gaming Institute at the University of Nevada Las Vegas organizes this conference every three years, convening over 500 researchers, regulators, academics, professional gamblers, and industry stakeholders from more than 25 countries.
Titus noted that prediction markets have not received authorization from Congress nor from the U.S. Supreme Court’s 2018 ruling, which invalidated a federal ban on sports betting and facilitated its expansion into 38 states and Washington, D.C.
She indicated that platforms that offer contracts tied to sports results are circumventing mandatory safety measures required of licensed operators, such as anti-money laundering protocols, age verification, responsible gaming policies, and state licensing requirements.
In response, Titus has proposed the Fair Markets and Sports Integrity Act, which aims to prevent platforms like Kalshi and Polymarket from engaging in contracts related to sports and casino-type games without state-issued licenses. Prediction market operators have claimed jurisdiction under the Commodity Futures Trading Commission, a stance opposed by state and tribal gaming authorities.
“This initiative is not about hindering innovation or limiting competition,” Titus clarified. “The goal is to establish a fair playing field for those engaging in sports or casino betting.”
Titus expressed skepticism regarding whether the CFTC possesses the requisite expertise or resources to regulate gambling. She further commented that sports betting integrity monitoring, a tool utilized by licensed sportsbooks to identify unusual betting trends and avert scandals, may be ineffective in an unregulated environment.
Additionally, Titus has presented the Fair Bet Act in Congress, which seeks to reinstate the full deduction for gambling losses, reduced from 100% to 90%. She has also expressed support for increasing the slot tax threshold to $5,000 after its recent adjustment to $2,500.
Moreover, she advocates for the Discriminatory Gaming Tax Repeal Act, which is designed to abolish the 0.25% excise tax on sports betting, citing the Treasury Department’s lack of clarity regarding the allocation and usage of these funds.
Titus affirmed that Nevada continues to be a benchmark for gaming regulation and highlighted that public trust is contingent upon fair gaming, accountability among operators, consumer protection, and the integrity of the competitive landscape.