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Gaming Edge’s TL;DR
- Pennsylvania lawmakers have introduced a bipartisan bill that would create a new state framework for prediction markets.
- It adds protections for consumers and rules on enforcement.
House Bill 2711 was recently introduced by Rep. Tarik Khan (D-Philadelphia), with bipartisan support. The proposal would create a new “Prediction Markets” chapter under Title 4 of Pennsylvania’s Consolidated Statutes.
It would add consumer protections and enforcement rules, including insider-trading bans, participation limits, and penalties that could reach $1 million per day for operators that ignore a court order.
The legislation has been referred to the House Consumer Protection, Technology and Utilities Committee.
Certain contract categories would be barred
The bill’s core focus is market integrity.
As quoted in the proposal:
“No person shall, directly or indirectly, knowingly or recklessly, use material nonpublic information or engage in fraudulent or manipulative conduct to obtain a financial benefit through a prediction market.”
Insider-trading violations would carry civil penalties of at least $50,000 or twice the profits gained or losses avoided.
HB 2711 would also require operators to use commercially reasonable and technically feasible measures to prevent fraud and manipulation, while detecting and reporting suspicious activity. Operators would have to report potential violations to the Pennsylvania Attorney General and law enforcement.
For users, the bill would bar participation by anyone under 21, self-excluded individuals, platform insiders, and people tied to a market’s outcome. It would also prohibit certain contract categories, including markets involving health status, death, and sports below the collegiate level.
For operators, the enforcement language is significant. Initial violations could bring civil penalties of up to $10,000 per offense, while persistent violations could rise to $50,000 per violation. The Attorney General could also seek an injunction to stop an operator from serving Pennsylvania users. If an operator kept serving the state after a court order, the bill would allow penalties of up to $1 million per day.
Based on reporting by Jonathan Rodriquez for Betting News.
