Pennsylvania Bill Aims to Ban Gaming Companies from Market Making for Prediction Markets
2026-07-27 20:23
Odaily Planet Daily News A bipartisan group of lawmakers in Pennsylvania has introduced HB 2711, a bill aimed at prohibiting sports betting and other gambling companies from acting as liquidity providers or market makers on prediction platforms. The bill was introduced by State Representative Tarik Khan on July 22 and has been referred to the House Consumer Protection, Technology, and Utilities Committee.
The bill would also ban prediction platforms from entering into contracts or sharing revenue with companies typically engaged in gambling businesses, with restrictions covering parent companies, subsidiaries, affiliated parties, joint ventures, employees, and entities acting for the financial benefit of other companies. DraftKings and Flutter have both previously advanced market-making operations, with DraftKings recently launching the DKeX exchange after acquiring CFTC-registered firm Railbird Technologies.
HB 2711 proposes setting a minimum participation age of 21 and requires platforms to exclude self-excluded users, company employees, employees of settlement sources, and those holding material non-public information. The bill also mandates that platforms implement commercially reasonable measures to prevent fraud, manipulation, and abuse of material non-public information, and prohibits markets involving high school sports, participation of minors in sporting events, personal health conditions, and death events.
The proposal does not establish a licensing system, with enforcement powers delegated to the state Attorney General. A companion bill, HB 2497, has also been introduced in Pennsylvania, which would require platforms to obtain a license from the Pennsylvania Gaming Control Board and impose a combined 22% tax on revenue from prediction betting platforms. Neither bill has yet received a committee vote or hearing.
The bill would also ban prediction platforms from entering into contracts or sharing revenue with companies typically engaged in gambling businesses, with restrictions covering parent companies, subsidiaries, affiliated parties, joint ventures, employees, and entities acting for the financial benefit of other companies. DraftKings and Flutter have both previously advanced market-making operations, with DraftKings recently launching the DKeX exchange after acquiring CFTC-registered firm Railbird Technologies.
HB 2711 proposes setting a minimum participation age of 21 and requires platforms to exclude self-excluded users, company employees, employees of settlement sources, and those holding material non-public information. The bill also mandates that platforms implement commercially reasonable measures to prevent fraud, manipulation, and abuse of material non-public information, and prohibits markets involving high school sports, participation of minors in sporting events, personal health conditions, and death events.
The proposal does not establish a licensing system, with enforcement powers delegated to the state Attorney General. A companion bill, HB 2497, has also been introduced in Pennsylvania, which would require platforms to obtain a license from the Pennsylvania Gaming Control Board and impose a combined 22% tax on revenue from prediction betting platforms. Neither bill has yet received a committee vote or hearing.
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