Prediction markets are exchange platforms that specialize in offering event contracts. Event contracts allow parties to trade on the occurrence or nonoccurrence of specific events. Prediction markets operate on a quote-based system, where the underlying price for an event contract is determined by participants’ continuous buying and selling reaching an equilibrium. Prediction markets have grown rapidly in recent years, facilitated by judicial decisions and changes in regulatory posture, which have led to significant growth in the subject matter of available contracts, including elections and sports. The expansion of prediction markets into sports since early 2025 has led to conflict and litigation between prediction markets and the state regulators that oversee traditional sports gambling. This In Brief summarizes some of the pertinent federal law applicable to prediction markets as well as relevant legislation introduced in the 119th Congress. H.R. 7477, H.R. 7840, S. 4035/H.R. 7942, S. 4115/H.R. 7955, S. 4160/H.R. 9856, H.R. 8123/S. 4226. S.Res. 708, H.R. 7004, S. 4017, H.R. 8076, S. 4188, H.Res. 1248, H.Res. 1263, H.R. 8838, S. 4615, H.R. 9082, H.R. 8800, S. 4784, H.R. 9367, H.R. 9429, H.R. 9560. S. 4060, H.R. 8148, S. 4469, H.R. 8912, S. 4555, H.R. 7757, H.R. 6484, S. 1748, H.R. 8912, H.R. 9706, H.R. 8970, S. 4668.
Full content not yet available.