Pennsylvania lawmakers are considering regulating prediction markets, which allow people to bet on outcomes like political elections and military developments, due to concerns about underage gambling and lost state revenue.Markets regulated at the federal level These markets are regulated at the federal level, allowing individuals as young as 18 to invest in outcomes like election results. However, there are concerns that minors, who are not legally allowed to gamble on sports, might use these platforms to bet on certain outcomes, and that the state is missing out on potential revenue.When logging into Kalshi, markets were found for various political events, including when the Department of Homeland Security would be funded again, who will be the Democratic nominee for president, and which party will take control of the U.S. House.Rep. Danilo Burgos wants prediction markets under jurisdiction of Gaming Control Board”If there’s no regulations, there’s nothing to guard against,” said Rep. Danilo Burgos, D-Philadelphia.Burgos has proposed that prediction markets like Kalshi or Polymarket be placed under the jurisdiction of the state’s Gaming Control Board, with a 34% state tax and protections against:Underage playersMoney launderingUsers with gambling problems”It’s another opportunity to expand tax base,” Burgos said. “And like everything else that has a potential harm for our community, for our communities. It can create bad habits or worse habits in our communities. That’s one of the dangers that I see.”Pennsylvania Gaming Control Board declines commentThe Pennsylvania Gaming Control Board declined to comment on the proposal or the issue of regulating markets, but they informed state lawmakers last year that prediction markets undermine the Keystone State’s sports betting and gambling markets.”This started about a year ago with congressional and presidential races. They got away with that, then the gloves came off,” said a source familiar with the situation.
Pennsylvania lawmakers are considering regulating prediction markets, which allow people to bet on outcomes like political elections and military developments, due to concerns about underage gambling and lost state revenue.
Markets regulated at the federal level
These markets are regulated at the federal level, allowing individuals as young as 18 to invest in outcomes like election results. However, there are concerns that minors, who are not legally allowed to gamble on sports, might use these platforms to bet on certain outcomes, and that the state is missing out on potential revenue.
When logging into Kalshi, markets were found for various political events, including when the Department of Homeland Security would be funded again, who will be the Democratic nominee for president, and which party will take control of the U.S. House.
Rep. Danilo Burgos wants prediction markets under jurisdiction of Gaming Control Board
“If there’s no regulations, there’s nothing to guard against,” said Rep. Danilo Burgos, D-Philadelphia.
Burgos has proposed that prediction markets like Kalshi or Polymarket be placed under the jurisdiction of the state’s Gaming Control Board, with a 34% state tax and protections against:
Underage playersMoney launderingUsers with gambling problems
“It’s another opportunity to expand tax base,” Burgos said. “And like everything else that has a potential harm for our community, for our communities. It can create bad habits or worse habits in our communities. That’s one of the dangers that I see.”
Pennsylvania Gaming Control Board declines comment
The Pennsylvania Gaming Control Board declined to comment on the proposal or the issue of regulating markets, but they informed state lawmakers last year that prediction markets undermine the Keystone State’s sports betting and gambling markets.
“This started about a year ago with congressional and presidential races. They got away with that, then the gloves came off,” said a source familiar with the situation.