Nevada Rep. Titus urges crackdown on prediction markets offering sports betting-like contracts

U.S. Representative Dina Titus of Nevada has called on the Commodity Futures Trading Commission (CFTC) to take stricter action against prediction market platforms that allow users to wager on sporting events, arguing that they offer a "backdoor way" to legalize sports betting in states where it remains prohibited.  

In a letter to CFTC Acting Chairwoman Caroline D. Pham, Titus criticized companies including Kalshi, Crypto.com, and Robinhood, which she said have begun offering event contracts on sports outcomes in a stock market-style format.  

"This year, platforms have started to offer contracts on sporting events," Titus wrote in the letter, which she also posted on social media. "Event contracts on sporting events bring this relatively new industry directly into conflict with state-regulated gaming operators."  

Titus, who represents Nevada, home to the longest-established legal gaming industry in the U.S., expressed concern that these platforms could undermine state gaming regulations.  

I contacted @CFTC with my concerns about legalizing prediction markets on sports-related contracts. It is a backdoor way to allow sports betting in 50 states, ignoring consumer protections, responsible gaming, integrity monitoring, and state tax revenue rules and regulations. pic.twitter.com/XJTFFetQjH

— Dina Titus (@repdinatitus) February 24, 2025

"Permitting prediction contracts on sporting events has several troubling effects that the Commission should address before issuing any rulemaking," she said. "Prediction contracts on sports create a backdoor way to legalize sports betting in states that have not authorized it. The regulation and legalization of sports betting have traditionally been dealt with at the state level in the United States.”  

She emphasized that sports betting regulation has historically been handled at the state level, with Nevada and other states enforcing strict licensing and compliance measures for operators.  

Titus’ criticism comes amid broader scrutiny of prediction markets, which allow users to bet on political, economic, and social events. While some platforms have sought regulatory approval, others have faced legal challenges over concerns about financial market integrity and gambling laws.