H.R. 9856: Prediction Markets Are Gambling Act

This bill would change federal commodity law to prohibit certain event contracts tied to sports and casino-style games from being listed, cleared, or traded on registered trading platforms.

What counts as a covered contract

The bill defines two broad categories:

• Sporting events or athletic competitions: This includes live or virtual contests involving physical activity or skill, such as amateur, college, and professional sports, where performance determines an outcome or statistic.
• Casino-style games: This includes games traditionally found in casinos, such as slot machines, video poker, blackjack, roulette, craps, other casino table games, bingo, lottery, and simulations of those games.

What the bill would forbid

Under the bill, no agreement, contract, or transaction related to those sports or casino-style events could be listed or made available for clearing or trading on a registered entity. In practical terms, this would bar federally regulated markets from offering contracts whose payoff depends on the result of a sports game or casino-style game.

Effect on existing law and state law

The bill amends the Commodity Exchange Act, which governs certain trading markets. It also says the new federal rule should not be read to override state laws or state rules that already regulate or ban these kinds of contracts. That means states would remain free to enforce their own rules in this area.

When it would apply

The prohibition would apply only to agreements, contracts, or transactions entered into on or after the date the law is enacted.

Relevant Companies

• None found