(WHTM)– A Pennsylvania lawmaker is proposing legislation that would bring “prediction markets” under the oversight of the Pennsylvania Gaming Control Board.
Prediction markets have grown in popularity in recent years. Digital “event market” platforms allow users to trade on the outcomes of events such as political elections, award ceremonies, economic shifts, and more.
The memo said that these platforms often claim to be “financial derivatives” rather than gaming products, which means they bypass the safeguards that the PGCB has built for casinos and sportsbooks.
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The bill, proposed by State Rep. Danilo Burgos (D-197), would bring the emerging industry under the PGCB’s oversight. “This ‘regulatory arbitrage’ leaves our constituents vulnerable and deprives the Commonwealth of significant tax revenue,” the memo said.
The legislation, called the Event Market Regulatory Act, would mirror the framework established by Act 42 of 2017 for sports wagering, per the memo.
Key components would include:
Robust Oversight: Grants the PGCB exclusive jurisdiction to license and audit all operators, ensuring markets are not manipulated.
Fiscal Parity: Implements a 34% state tax and 2% local share assessment on gross revenue, ensuring these platforms contribute their fair share to the General Fund and local communities, just as our casinos do.
Consumer Protection: Mandates the same strict Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols used by our regulated sportsbooks to prevent underage participation and financial crime.
Responsible Gaming: Requires operators to integrate with the state’s Self-Exclusion List and provide users with deposit and loss-limit tools.
Strong Enforcement: Empowers the Pennsylvania Attorney General to prosecute any unlicensed entities or violators of the Act.
Rep. Burgos is seeking co-sponsors for the legislation. The bill has not yet been submitted for introduction.
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