Pennsylvania bill proposes regulation of prediction markets and sports event contracts
House Bill 2711 has been referred to the Consumer Protection, Technology and Utilities Committee.
US.- Pennsylvania Representative Tarik Khan has proposed a bipartisan measure that would establish a state regulatory framework for prediction markets and permit sports event contracts. House Bill 2711 is co-sponsored by 20 Democrats and four Republicans and has been referred to the Consumer Protection, Technology and Utilities Committee.
HB 2711 would amend Title 4 of the Pennsylvania Consolidated Statutes. A new chapter, Chapter 20 would define prediction markets as platforms allowing speculative positions on future event outcomes in a bid-ask format and sets operational standards for providers.
Providers would be required to bar anyone under 21 from opening an account or taking positions. They would also have to maintain exclusion policies covering self-excluded users, their own officers, directors, employees or agents, those of settlement sources, and individuals holding material nonpublic information on a particular market.
The legislation would prohibit speculative positions on sporting events involving minors or high school teams, an individual’s health status and death markets. A provider would not be allowed to offer a prediction market in Pennsylvania if a liquidity provider or market maker is a person who knowingly engages in a gaming activity in the ordinary course of business, whether inside or outside the state. The restriction would extends to affiliated entities, subsidiaries, parent companies, joint ventures and related parties.
Enforcement authority would rest with the attorney general or appropriate district attorneys. Civil penalties would reach a maximum of $10,000 for each violation or up to $50,000 for persistent breaches. The bill would not impose taxes or place prediction marketsunder the Pennsylvania Gaming Control Board.
