Representatives Steven Horsford and Mark Amodei of Nevada introduced the bipartisan Prediction Markets Are Gambling Act, formally designated H.R. 9856, on July 22, 2026. [1]

According to the official congressional record, the bill would amend the Commodity Exchange Act to prohibit certain event contracts involving sports and casino-style games. It was referred to the House Committee on Agriculture, which has jurisdiction over the federal commodities framework.

In announcing the proposal on July 23, the sponsors said their objective was to prevent federally registered trading platforms from offering products that function like sports betting or casino gambling while being presented as financial contracts. [2]

Prediction markets allow participants to buy and sell contracts linked to the outcome of future events. The price of a contract typically moves according to the market’s assessment of how likely an outcome is to occur.

The model was initially associated with subjects such as elections, economic indicators and public events. The political and regulatory dispute has intensified as sports-related and casino-style contracts have become more prominent.

H.R. 9856 is aimed at the use of the federal commodities framework for contracts involving sports and casino-style games. The sponsors’ position is that products functioning as gambling should not receive different treatment simply because they are structured as tradable event contracts.

Sports-focused sweepstakes platforms use different mechanics. The ACS sports sweepstakes guide explains how these platforms may use virtual currencies, free-entry methods, eligibility requirements, identity checks and prize-redemption rules. Those features are separate from the federally regulated event-contract model addressed by H.R. 9856.

The federal bill arrived one day after the North American Association of State and Provincial Lotteries published a separate statement calling for urgent regulatory clarification around prediction markets. [3]

NASPL said the rapid growth of event-based contracts could affect consumer protection, responsible gaming standards, sports and lottery integrity, anti-money-laundering controls, law enforcement and the public programs supported by regulated lottery revenue.

Its proposed approach focuses on how a product functions rather than what it is called. In practical terms, NASPL argues that a product should be treated as betting when a participant’s financial return depends on the result of a future event.

The World Lottery Association has taken a similar position. In a May 2026 policy paper, the organization called for closer alignment between financial-market regulators and gambling regulators, particularly where sports and other event contracts resemble traditional wagering products. [4]

Not directly at this stage. H.R. 9856 concerns event contracts governed through the federal commodities system. Conventional sweepstakes casinos generally operate under a different model involving free-to-play currency, promotional sweepstakes entries and state-specific eligibility rules.

The separate sweepstakes structure commonly centers on prize, chance and consideration, including whether a genuine no-purchase method of entry is available. Readers looking for a plain-English explanation can see the ACS guide to consideration, free entry and the sweepstakes casino model .

That does not make the development irrelevant to sweepstakes players. The broader dispute centers on a question that also appears frequently in the sweepstakes industry: should regulators focus on the label attached to a product, or on how the product functions for the consumer?

The proposal could nevertheless influence future debate about products that combine elements of gaming, contests, financial markets or event outcomes. Regulators and lawmakers may increasingly apply function-based tests rather than relying solely on the terminology used by an operator.

Nothing in H.R. 9856 requires players to take immediate action. However, anyone using a prediction market, sports sweepstakes platform or sweepstakes casino should understand what type of product they are using and which protections apply.

The next meaningful developments would come through the congressional process. Players should watch for movement in the House Agriculture Committee, changes to the bill’s language and any response from federal commodities regulators or prediction-market operators.

For now, the importance of H.R. 9856 is political rather than immediate. It places a bipartisan proposal in Congress that explicitly describes sports and casino-style prediction contracts as products that should not be offered through the federal commodities framework.

Whether the bill advances or not, the combined pressure from lawmakers and lottery organizations suggests that the legal boundary between prediction markets and gambling will remain one of the most closely watched gaming policy issues of 2026.