{"id":251413,"date":"2026-07-24T20:55:10","date_gmt":"2026-07-24T20:55:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-pa\/251413\/"},"modified":"2026-07-24T20:55:10","modified_gmt":"2026-07-24T20:55:10","slug":"pennsylvania-bill-would-regulate-prediction-markets-allow-sports-event-contracts","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-pa\/251413\/","title":{"rendered":"Pennsylvania Bill Would Regulate Prediction Markets, Allow Sports Event Contracts"},"content":{"rendered":"\n

Want to get more Covers content? Add us as a preferred source on your Google account here<\/a>. <\/p>\n

Pennsylvania lawmakers are considering a different approach to prediction markets and sports event contracts. <\/p>\n

Rep. Tarik Khan introduced HB 2711<\/a> on Wednesday, a bill that would create a regulatory framework for platforms like Kalshi and Polymarket. <\/p>\n

Key Takeaways <\/p>\n

Twenty-four House members sponsored Pennsylvania’s bipartisan bill.<\/p>\n

The proposed legislation would create consumer protections and integrity measures, similar to sports betting.<\/p>\n

Sports event contracts are not under the proposed prohibited list. <\/p>\n

Other states have attempted to ban prediction markets or tax trading exchanges operating in their jurisdictions, even though these platforms are federally regulated by the Commodity Futures Trading Commission (CFTC). <\/p>\n

The bipartisan bill is sponsored by 20 Democrats and four Republicans. It was referred to the Consumer Protection, Technology & Utilities Committee for a reading and vote.\u00a0 <\/p>\n

Consumer, integrity protections <\/p>\n

Similar to sports betting, the proposed legislation would add consumer protections and integrity measures to prediction markets<\/a>. Operators would be required to offer self-exclusion programs, detect market manipulation involving employees with access to nonpublic information, and inform the state of potential insider trading. <\/p>\n

HB 2711 would require traders to be at least 21 years old. The bill would prohibit contracts involving high school or minors sports, as well as individual health-status and death markets, which include assassinations, attempts, and mass casualty events.\u00a0 <\/p>\n

While most of these restrictions don’t apply to sports betting, the bill states, “A provider may not offer a prediction market in this Commonwealth if the prediction market includes, as a liquidity provider or market maker, a person that knowingly engages in a gaming activity in the ordinary course of business.” <\/p>\n

This would likely prevent DraftKings and FanDuel, both licensed sportsbooks in Pennsylvania, from operating their prediction market platforms there. <\/p>\n

Introducing penalties\u00a0 <\/p>\n

The proposed legislation would also give the state the ability to impose civil penalties for violations of the regulatory framework. Punishments include a fine up to $10,000 for each violation. Persistent breaches of regulation concerning market making, participation exclusions, and nonpublic information trading could result in a $50,000 penalty. \u00a0 <\/p>\n

Individual liability infringement penalties could exceed $50,000 or twice the amount of profits gained or losses avoided. The Pennsylvania attorney general could also seek to ban an operator with numerous violations through a court action. Ignoring a court order and operating anyway could result in a fine of $1 million per day. <\/p>\n

Unique proposition \u00a0 <\/p>\n

HB 2711 still has a long way to go to become law in a state with established sports betting, but it presents a unique proposal. Kalshi, Polymarket, and other prediction market platforms are currently involved in multiple lawsuits with legal sports betting states.\u00a0 <\/p>\n

Even the CFTC is suing states, including Illinois, which recently approved a tax<\/a> on prediction market operators in its budget. The federal agency and the CFTC-approved trading exchanges argue they are exempt from following state laws.\u00a0 <\/p>\n

It’s unknown whether they will support Pennsylvania’s attempt to create a regulatory framework or take legal action against a state trying to tell them how to operate. North Carolina recently approved a 6% tax on prediction market operators, but the state said it would allow them to offer<\/a> sports contracts without a license. <\/p>\n

This article originally appeared on Covers.com<\/a>, read the full article here<\/a> and view our best betting sites<\/a> or check out our top sportsbook promos<\/a>. <\/p>\n","protected":false},"excerpt":{"rendered":"Want to get more Covers content? Add us as a preferred source on your Google account here. Pennsylvania…\n","protected":false},"author":2,"featured_media":251414,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[42984,107479,107478,28,30,29,60557,49562,70041,6518,27564],"class_list":["post-251413","post","type-post","status-publish","format-standard","has-post-thumbnail","category-pennsylvania","tag-bipartisan-bill","tag-cftc","tag-market-manipulation","tag-pennsylvania","tag-pennsylvania-headlines","tag-pennsylvania-news","tag-prediction-markets","tag-proposed-legislation","tag-regulatory-framework","tag-sports-betting","tag-sports-event"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/posts\/251413","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/comments?post=251413"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/posts\/251413\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/media\/251414"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/media?parent=251413"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/categories?post=251413"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/tags?post=251413"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}