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Sen. Ted Cruz plans legislation that would prevent federally regulated prediction markets from bypassing state gambling laws. Gambling-related event contracts, including those tied to sports betting, would need authorization from a state or tribal government.
Bloomberg Law reported Friday that Cruz intends to introduce the measure after the midterm elections. The proposal concerns federal oversight and state gambling authority, rather than a Texas-specific gambling bill.
State or Tribal Approval for Gambling Contracts
According to details obtained by Bloomberg Law, the planned bill would prohibit prediction markets from offering event contracts tied to gambling activities unless a state or tribal government authorizes them.
That authorization requirement is the central issue for sports-related prediction markets: the proposal seeks to stop federally regulated platforms from sidestepping state gambling laws.
The effort targets platforms such as Kalshi, which offers prediction markets tied to sports and other events. The reported restriction concerns gambling-related contracts; the supplied details do not establish a prohibition on every type of prediction market.
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Source: As reported by news.bloomberglaw.com.
