Texas Lieutenant-Governor Ready to Battle Prediction Markets
Jesse M. Cox Published 11/05/2026
Long an opponent of all forms of gambling, Texas Lieutenant Governor Dan Patrick is setting his sights on the latest infiltrator into his state from the world of online gambling. Referring to them as a "gambling loophole," Patrick is going after prediction markets. He is directing state Senators to seek out ways to close those loopholes.
In doing so, Patrick is going into battle with one of his ardent supporters. That would be U.S. President Donald Trump. The Trump Administration regulates prediction markets through the federal Commodities Futures Trading Commission (CFTC). They are involved in several court battles over prediction markets in other states.
Texas Lieutenant Governor opposes all forms of gambling
Patrick has never shied away from stepping in to shut down attempts to bring gambling into Texas. The Lone Star State prohibits all forms of sports betting and casino gambling. In the battle to legalize sports betting, Patrick has successfully shut down attempts that had the backing of such notable Texans as Jerry Jones, owner of the NFL's Dallas Cowboys, and billionaire Mark Cuban, formerly the owner of the NBA's Dallas Mavericks.
His opposition to prediction markets will see Patrick coming into conflict with the movers and shakers who are the face of the federal Republican Party. He even appears to be in opposition to his own Attorney General.
Texas Attorney General Ken Paxton refused to put his signature on a legal brief created by the National Association of Attorneys General. The legal brief is making the argument that the CFTC does not have sole authority to regulate prediction markets.
A Texas candidate was fined for betting on himself
Patrick worries that prediction markets offer event contracts on elections, economic outcomes, and even wars. He fears that it could lead to rampant insider trading. Those fears appear to have some merit.
Prediction market site Kalshi recently revealed that it had fined three 2026 U.S. election candidates for insider trading. Each reportedly bet on themselves to win their respective races. One of the three was running in Texas.
Republican candidate Ezekiel Enriquez was the Texas candidate who was fined by Kalshi. Enriquez lost in the primaries. According to Kalshi, Enriquez bet $100 on himself to win. He was running in the GOP primary for the 21st Texas Congressional District. He finished 11th behind the winner, former MLB player Mark Texeira.
"When we contacted the trader, he was fully cooperative with the investigation and agreed to settle, acknowledging the rule violation, paying a fine of $784.20, and accepting a 5-year suspension," Kalshi said in a statement, according to reporting by USA Today.
Feds are willing to fight to keep control of prediction markets
He's been successful in keeping legal and regulated gambling out of Texas. However, this latest battle could prove to be Patrick's toughest test. The CFTC has made it abundantly clear they are willing to fight any state that challenges its authority to rule over prediction markets.
The CFTC is currently engaged in court battles in five states about jurisdiction over prediction markets. Could Texas be the sixth battleground?
“It’s not a fight that we want to be in, but we’re not surprised that we are in it,” Sara Slane, head of corporate development for Kalshi, told the Texas Tribune. “I think when people sort of take a step back, certainly from a state level, and they’re simply viewing this as a federal preemption issue over states’ rights, your natural intuition is to be the defender of your state rights.”