Texas Democrat Bhojani Advances Bill to Raise Prediction Market Age to 21

Texas Democrat Rep. Salman Bhojani has pre-filed House Bill 598 ahead of the January 2027 legislative session, proposing to raise the minimum age requirement for prediction market trading in the state from the current 18 to 21 years old. The move would bring Texas into alignment with federal gambling age standards and eliminate inconsistencies created by some of the nation's largest prediction market operators, including Fanatics and Novig, which already employ 21-and-up mandates.

The proposal arrives during a period of significant political momentum for gaming expansion in Texas. Democrats secured control of the state House and all major statewide offices in the November 2026 midterm elections, including the incoming governor Gina Hinojosa, creating a favorable environment for wagering-related legislation. Multiple colleagues have pre-filed additional gaming measures, signaling a comprehensive push to modernize the state's gambling framework.

Bhojani's bill includes several consumer protection mechanisms and marketing restrictions. Operators would be required to implement know-your-customer (KYC) protocols using government-issued identification or commercially reasonable age verification systems. The legislation also proposes banning prediction market advertising near primary and secondary schools while mandating that operators clearly communicate the 21-year-old minimum age requirement.

The proposal gained momentum following advocacy from the Texas Medical Association, which raised concerns that teenagers may be particularly vulnerable to developing problematic wagering habits due to the high-speed trading environment that yes/no exchanges provide. The TMA also recommended restrictions on prediction market advertising in spaces frequented by minors, including social media platforms popular with teens.

While Bhojani's bill does not directly target sports event contracts, it proposes civil penalties for operators that permit trading in categories deemed socially harmful. These include event contracts tied to criminal investigations, deaths of individuals, executions, legal outcomes, terrorism, and acts of war. This approach sidesteps the regulatory battles over sports prediction markets that have created legal challenges for the industry in other jurisdictions.

The political landscape suggests favorable passage prospects. While Republicans control the Texas State Senate, Governor-elect Hinojosa's Democratic affiliation means the bill would likely reach her desk for signature if approved by the legislature. The combination of Democratic legislative majorities in at least one chamber and a Democratic governor positioned to sign gaming regulation represents a structural advantage for Bhojani's proposal.

The timing reflects broader national momentum regarding prediction market oversight. At the federal level, Democrats will hold substantial majorities in both chambers of Congress beginning in January 2027, suggesting enhanced scrutiny of prediction markets and other emerging wagering formats at the national level.