Pennsylvania Bill Proposes Ban on Gaming Companies Acting as Market Makers for Prediction Markets
2026-07-27 20:23
Odaily Planet Daily News: A bipartisan group of lawmakers in Pennsylvania, USA, has introduced HB 2711, a bill aimed at prohibiting sports betting and other gambling companies from serving 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 prohibit prediction platforms from entering into contracts or sharing revenue with enterprises typically engaged in gambling operations, with restrictions covering parent companies, subsidiaries, affiliates, joint ventures, employees, and entities acting for the financial benefit of other companies. DraftKings and Flutter have both previously advanced market-making operations. DraftKings recently launched the DKeX exchange after acquiring CFTC-registered company 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 requires platforms to implement commercially reasonable measures to prevent fraud, manipulation, and the misuse of material non-public information, and prohibits markets involving high school sports, sporting events with minor participants, personal health conditions, and death events.
The proposal does not establish a licensing system, and enforcement authority would be delegated to the state Attorney General. A companion bill, HB 2497, also 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. Neither bill has yet received a committee vote or hearing.
The bill would also prohibit prediction platforms from entering into contracts or sharing revenue with enterprises typically engaged in gambling operations, with restrictions covering parent companies, subsidiaries, affiliates, joint ventures, employees, and entities acting for the financial benefit of other companies. DraftKings and Flutter have both previously advanced market-making operations. DraftKings recently launched the DKeX exchange after acquiring CFTC-registered company 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 requires platforms to implement commercially reasonable measures to prevent fraud, manipulation, and the misuse of material non-public information, and prohibits markets involving high school sports, sporting events with minor participants, personal health conditions, and death events.
The proposal does not establish a licensing system, and enforcement authority would be delegated to the state Attorney General. A companion bill, HB 2497, also 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. Neither bill has yet received a committee vote or hearing.
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