Pennsylvania Bill Proposes Ban on Gaming Companies Acting as Market Makers for Prediction Markets
2026-07-27 20:23
OdailyOdaily Planet Daily News Bipartisan lawmakers in Pennsylvania, USA, have 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 forbid prediction platforms from entering into contracts or sharing revenue with companies primarily engaged in gambling operations. This restriction extends to parent companies, subsidiaries, affiliates, joint ventures, employees, and entities acting for the financial benefit of other companies. Both DraftKings and Flutter have previously advanced market-making operations; DraftKings recently launched the DKeX exchange after acquiring CFTC-registered company Railbird Technologies.
HB 2711 proposes a minimum participation age of 21 and requires platforms to exclude self-excluded users, company employees, employees of settlement sources, and individuals possessing material non-public information. The bill also mandates that platforms implement commercially reasonable measures to prevent fraud, manipulation, and the misuse of material non-public information. It prohibits markets related to high school sports, sports events involving minors, personal health conditions, and death events.
The proposal does not establish a licensing system, with enforcement authority vested in the state Attorney General. A companion bill, HB 2497, also introduced in Pennsylvania, would require platforms to obtain a license from the Pennsylvania Gaming Control Board and impose a combined 22% tax on the revenue of prediction betting platforms. As of now, neither bill has received a committee vote or hearing.
The bill would also forbid prediction platforms from entering into contracts or sharing revenue with companies primarily engaged in gambling operations. This restriction extends to parent companies, subsidiaries, affiliates, joint ventures, employees, and entities acting for the financial benefit of other companies. Both DraftKings and Flutter have previously advanced market-making operations; DraftKings recently launched the DKeX exchange after acquiring CFTC-registered company Railbird Technologies.
HB 2711 proposes a minimum participation age of 21 and requires platforms to exclude self-excluded users, company employees, employees of settlement sources, and individuals possessing material non-public information. The bill also mandates that platforms implement commercially reasonable measures to prevent fraud, manipulation, and the misuse of material non-public information. It prohibits markets related to high school sports, sports events involving minors, personal health conditions, and death events.
The proposal does not establish a licensing system, with enforcement authority vested in the state Attorney General. A companion bill, HB 2497, also introduced in Pennsylvania, would require platforms to obtain a license from the Pennsylvania Gaming Control Board and impose a combined 22% tax on the revenue of prediction betting platforms. As of now, neither bill has received a committee vote or hearing.
บทความแนะนำ
