Pennsylvania Bill Aims to Corral Prediction Markets
David Genge Published 31/07/2026
Pennsylvania bill HB 2711 would create a regulatory framework for prediction market sites operating in the state. This bipartisan bill is backed by 20 Democrats and four Republicans. If passed, it would require prediction market sites to provide the same consumer protections and integrity measures that are made available by legal and regulated sports betting sites operating in the state.
On a positive note for prediction markets, by agreeing to these regulatory measures, Pennsylvania lawmakers would permit the sites to offer sports-event contracts to players in the state. All enforcement of these measures would be placed in the hands of the state Attorney General's office.
Pennsylvania is treading into CFTC territory by proposing prediction market regulations
All prediction market sites operating in the US market are federally regulated by the Commodity Futures Trading Commission (CFTC). Both the sites and the CFTC have argued in court that states do not have the right to impose regulatory measures on a federally regulated operation. As Pennsylvania moves ahead with bill HB 2711, it will be interesting to see the reaction from the CFTC.
Among its measures, the bill would implement 21 as the minimum age to participate in any prediction markets in Pennsylvania. While the offering of sports event contracts is okay, there would be restrictions on contracts for high school sports or any sport involving anyone under the legal age of majority. Event contracts on any form of death market would be forbidden. These would include assassinations, war dead, and any type of mass casualty event. This would take into account tragedies like a plane crash or an earthquake.
Insider trading of any type would be forbidden. Athletes, coaches, officials, candidates, campaign workers, and any others with the ability to influence an outcome could face liability for trading in event contracts.
Similar to sports betting, safeguards must be in place to prevent fraud, manipulation, and the misuse of material nonpublic information. Implementing measures to protect against problem gambling is an additional mandatory undertaking. This would include offering self-exclusion and providing easy access to problem gambling counseling, treatment, and other resources.
Sports betting sites couldn't operate prediction markets
One intriguing twist in the language of HB 2711 must be a great concern to sportsbook operators in the Keystone State. The bill would prevent any of these providers from operating a prediction market site in Pennsylvania.
“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,” the bill reads.
Several sports betting sites operating in Pennsylvania's legal and regulated market are also participating in the prediction market side of the business. FanDuel, Fanatics, and DraftKings are Pennsylvania sportsbooks that also operate prediction market sites offering event contracts.
Creating confusion, the bill does not provide language specifying what exactly it considers to be "gaming activity." It's also unclear how this ruling would affect any possibility of partnerships forming between a prediction market site and a Pennsylvania land-based casino.
Prediction market licenses would not be a requirement
Unlike sportsbooks, Pennsylvania wouldn't be charging prediction market sites to acquire an operating license. All enforcement of issues involving these sites would fall to the state Attorney General. They would hold the authority to investigate and impose penalties. The AG could shut down any platforms operating in violation of the established rules framework.
HB 2711 was given to the Consumer Protection, Technology & Utilities Committee for a reading and vote.