For nearly a century, Nevada has set the standard for legal gaming in the United States. This leadership is rooted in a strong partnership between the state and the regulated gaming industry, where revenues support essential public services such as education and transportation. In return, operators—including casinos, sportsbooks, and online platforms—must comply with strict rules on minimum age requirements, integrity monitoring, and responsible gaming programs designed to protect consumers and address gambling addiction.

However, over the past year, a new threat has emerged. Loosely regulated “prediction markets” have begun operating as de facto illegal sportsbooks, taking advantage of gaps in federal oversight. Under the watch of the Commodity Futures Trading Commission (CFTC), these platforms now offer so-called “event contracts” tied to sports outcomes—effectively sports bets by another name. Companies like Kalshi have rapidly expanded this activity, with sports-related contracts reportedly accounting for the vast majority of their trading volume.

Despite clear conflicts with state and tribal gaming laws, federal regulators have largely failed to intervene. This inaction raises serious concerns about jurisdictional overreach and regulatory inconsistency. While Nevada legalized sports betting as early as 1949—and the Supreme Court later extended that authority to other states in 2018—the federal government has never been granted the power to regulate or authorize sports wagering nationwide.

Unlike licensed operators, prediction markets do not adhere to established safeguards. They often allow underage users to participate, bypass responsible gambling measures, and lack any meaningful integrity monitoring. In some cases, industry leaders have even promoted practices like insider-driven betting, further eroding trust and transparency.

The result is a rapidly growing, unregulated ecosystem that threatens the integrity of the gaming industry. Without stronger enforcement, these platforms risk undermining decades of progress, putting consumers at risk while prioritizing profits over accountability.