Texas Lieutenant Governor Dan Patrick has called for a legislative crackdown on prediction market platforms he says are exploiting federal regulations to circumvent state gambling prohibitions. The move aims to restore trust in these markets, which saw significant growth alongside the 2024 U.S. election but have been undermined by gambling. Patrick’s directive also includes assessing the state’s approach to emerging financial technologies like cryptocurrency and reviewing the implementation of Texas’s Strategic Bitcoin Reserve law.
Texas Lieutenant Governor Dan Patrick has unveiled plans for legislative changes to close gambling loopholes in prediction markets. He urged lawmakers to study the sudden inundation of prediction market gambling and the exploitation of federal law to circumvent Texas gambling prohibitions by allowing users to place bets on the outcome of elections and other events.
Patrick believes these markets are exploiting Commodity Futures Trading Commission (CFTC) regulations to bypass state law. The goal is to make recommendations to ensure the integrity of Texas elections and Texas sports.
David Miller, enforcement director of the CFTC, recently made his first public remarks on the issue. He stated, We are aware of the speculation about insider trading. We are watching.
Google Trends data shows search interest for “prediction market gambling” peaked in early March 2026 before declining significantly. This legislative push coincides with Polymarket releasing updated rulebooks for its platform.
Beyond prediction markets, Patrick directed lawmakers to assess how state agencies respond to emerging fintech while protecting consumers. He also highlighted concerns over scams involving crypto ATMs and called for a review of Senate Bill 21, the Texas Strategic Bitcoin Reserve bill implemented in June 2025.
