Once again, prediction markets continue to be a major point of focus for Texas betting news and things are not going to slow down there anytime soon. Things were once again highlighted at a recent Commerce Committee panel hearing, as multiple officials voiced their anger and worry. This had an impact on the Lone Star State, as Texas Senator Ted Cruz called out prediction markets sports betting. On top of that, he took issue with political betting too.

Cruz, along with others, isn't loving what he's seeing with the kind of activity being recorded on Kalshi and others. While speaking to the panel, Cruz didn't hold back with his sentiments. Straight up, Cruz has taken a big issue with things, particularly the sports aspect. In Texas alone, betting is not legal, but people are finding ways to get their bets in through the prediction markets, placing wagers on futures outcomes. Cruz surely has taken notice of this in a big way.

“There is serious disagreement about whether the CFTC can unilaterally allow prediction markets to offer sports event contracts pursuant to the Commodity Exchange Act,” Cruz said while speaking at the panel. “Many simply see prediction markets as a workaround to state gambling laws.”

It's easy to agree with what Cruz said to fellow Senators, particularly with his point on the 'workaround' to the state gambling laws. We're not seeing much positive movement when it comes to the Texas legalization efforts for sports betting, but the prediction markets loophole is what's allowing local citizens to get their bets in. Cruz has seen this become far too consistent, which is why he delivered such a strong opinion on things.

Insider betting was brought up during the prediction markets hearing as well

As you might have been able to guess, insider betting was brought up during the prediction markets hearing as well, which is something that continues to be discussed. The issue with betting on the prediction markets, particularly with politics, is that bettors could be swayed one way or the other with the way things are trending. We've also seen politicians get banned from betting, as they've put money down on their own race.

This is something that's being controlled, but there's still a potential here for incidents to keep arising. With sports betting, there's also concern that athletes, particularly those in college, could be pushed to change and alter the outcomes of games. We've already seen college sports incidents, with point shaving being brought up.

Overall, that's a growing issue across the country and not just in one location. This is a worry as to why this is taking so long for things in Texas, but things remain unclear there. For now, sports betting is illegal in Texas and once again, we don't know when that's going to change. Political betting? Also illegal. The predictions market workaround is a frustrating one, however, and Cruz isn't the only one in Texas who is not happy about things.

California and Texas go hand-in-hand with this sports betting issue

With the two being two massive states in the USA, it's safe to say that California and Texas go hand-in-hand with this sports betting issue. Prediction markets have become a massive concern for California, as three local tribes got things started in banding together to take legal action against them. Sports betting, in all forms, is illegal in the Golden State and that fact alone is something that people are quite tired of.

The same can be said for Texas, which also has this growing problem. For the two states, it's looking like 2028 may be the earliest that we see things legalized, but the two have also been dealing with consistent setbacks in recent years. Is that going to change at some point with the right sports betting bill put into motion?

That's tough to say, but until that happens, people in both California and Texas will see checking the top NFL sportsbooks for updated football odds, only to place bets elsewhere. We don't have to tell you that illegal betting in the two states is also a huge issue, which only highlights the need for regulated betting. It will be interesting to see if these two states legalize things around the same time, but that feels like a long shot at this point. Change is no question needed for both, though.