Cruz to introduce bill requiring state approval for prediction markets

Sen. Ted Cruz plans to introduce legislation after the November midterm elections that would bar federally regulated prediction markets from offering event contracts tied to gambling unless a state or tribal government authorizes them. The Texas Republican, who chairs the Senate Commerce, Science and Transportation Committee, aims to prevent these platforms from bypassing state gambling laws while the Trump administration asserts federal control over the industry.

The bill has not yet been introduced, and its text has not been released. Available reporting does not specify whether the authorization requirement would apply to all event contracts or only those linked to gambling, nor does it detail how states or tribes would grant approval or which lawmakers have signed on as co-sponsors.

The legislative push comes as the Commodity Futures Trading Commission moves to classify event contracts as swaps, a move that places sportsbook wagers and casino games outside that definition. Courts remain divided on the issue, with the Third Circuit siding with Kalshi in a dispute with New Jersey, while the Ninth and Sixth Circuits reached opposite conclusions in recent rulings.

Read the full story at rg.org.