HB 2711

                                                PRINTER'S NO.   3789
                THE GENERAL ASSEMBLY OF PENNSYLVANIA
                    HOUSE BILL
                    No. 2711
                                          Session of
                                            2026
INTRODUCED BY KHAN, SHAFFER, BURGOS, KOZAK, PROKOPIAK, FLICK,
   BELLMON, TIBURCIO, SANCHEZ, WAXMAN, PIELLI, PUGH, HANBIDGE,
   MERSKI, CARROLL, PROBST, RIVERA, HILL-EVANS, PARKER, DONAHUE,
   D. WILLIAMS, CIRESI, PASHINSKI AND CEPEDA-FREYTIZ,
   JULY 22, 2026
REFERRED TO COMMITTEE ON CONSUMER PROTECTION, TECHNOLOGY AND
   UTILITIES, JULY 22, 2026
                               AN ACT
1 Amending Title 4 (Amusements) of the Pennsylvania Consolidated
2    Statutes, providing for prediction markets; and imposing
3    civil penalties.
4    The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6    Section 1.    Title 4 of the Pennsylvania Consolidated Statutes
7 is amended by adding a chapter to read:
8CHAPTER 20
9PREDICTION MARKETS
10 Sec.
11 2001.   Definitions.
12 2002.   Age restrictions.
13 2003.   Participation exclusions.
14 2004.   Market making restrictions.
15 2005.   Certain markets prohibited.
16 2006.   Material nonpublic information and market manipulation.
1 2007.   Individual liability.
2 2008.   Prediction platform market liability.
3 2009.   Enforcement.
4 2010.   Penalties.
5 2011.   Rulemaking authority.
6 2012.   Severability.
7 § 2001.    Definitions.
8    The following words and phrases when used in this chapter
9 shall have the meanings given to them in this section unless the
10 context clearly indicates otherwise:
11    "Bid-ask format."      A method that a party uses to submit an
12 offer to buy a speculative position on a prediction market at a
13 specific price or range of prices and an offer to sell a
14 position at a specific price or range of prices, with market
15 prices determined through the matching of the offer.
16    "Death market."      A prediction market that:
17(1)   Enables a person to open a speculative position on
18    the death, assassination or attempted killing of an
19    individual or on a mass casualty event.
20(2)   Does not include a prediction market in that the
21    outcome could indirectly depend on a death as a consequence
22    of a person's inclusion in the market.
23    "Liquidity provider" or "market maker."      A person that,
24 directly or indirectly, and whether manually or through
25 automated means, offers to buy or sell a position in a
26 prediction market with the primary purpose of facilitating
27 trading, supporting price discovery or maintaining market
28 liquidity by posting a bid and asks.
29    "Material nonpublic information."      Information that:
30(1)   A reasonable prediction market platform user would
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1    consider important in opening a speculative position.
2(2)   Is not publicly available.
3    "Prediction market."     A market that uses a mechanism or
4 structure that allows a person to open a speculative position on
5 an outcome of a future event in a bid-ask format.
6    "Prediction market platform."  A platform or service that
7 provides access to a prediction market.
8    "Provider."     An entity that owns or operates a prediction
9 market platform.
10    "Settlement source."     A person that provides a prediction
11 market platform information to determine the outcome of a
12 market.
13    "Speculative position."     A financial commitment made by a
14 person participating in a prediction market.
15    "Sporting event."     Shall have the same meaning given to it in
16 section 13C01 (relating to definitions).
17 § 2002.    Age restrictions.
18    (a)    Account restriction.--A provider may not permit an
19 individual under 21 years of age to open an account and take a
20 speculative position on the prediction market platform.
21    (b)    Remedy.--If the provider inadvertently violates
22 subsection (a) and the provider discovers the violation, the
23 provider shall:
24(1)   Immediately suspend the account.
25(2)   Close all speculative positions on the account.
26(3)   Pay out to the individual any money in the account.
27(4)   Prohibit the individual from further participation
28    until the individual attains 21 years of age.
29 § 2003.    Participation exclusions.
30    A provider shall maintain and enforce policies to exclude the
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1 following individuals from participating in the prediction
2 market platform:
3(1)   An individual who has self-excluded from using the
4    prediction market platform.
5(2)   An officer, director, employee or agent of the
6    provider or the affiliated company of the provider.
7(3)   An officer, director, employee or agent of a person
8    who provides a settlement source.
9(4)   An individual who has insider information on a
10    particular market.
11(5)   Any other category of individuals the board deems
12    necessary to exclude.
13 § 2004.    Market making restrictions.
14    (a)    Timing prohibition.--
15(1)   A provider may not offer a prediction market in this
16    Commonwealth if the prediction market includes, as a
17    liquidity provider or market maker, a person that knowingly
18    engages in a gaming activity in the ordinary course of
19    business, whether within or outside this Commonwealth.
20(2)   Paragraph (1) applies to an affiliated entity,
21    subsidiary, parent company, joint venture, partnership,
22    agent, employee or a person acting at the discretion of, in
23    cooperation with or for the financial benefit of, another
24    person.
25    (b)    Contract or revenue share prohibition.--
26(1)   A provider may not offer a prediction market
27    platform to a person if the prediction market includes a
28    contract or share of revenue with a person or entity who
29    knowingly engages in a gaming activity in the ordinary course
30    of business, whether within or outside this Commonwealth.
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1(2)   Paragraph (1) applies to an affiliated entity,
2    subsidiary, parent company, joint venture, partnership,
3    agent, employee or a person acting at the discretion of, in
4    cooperation with or for the financial benefit of, another
5    person.
6 § 2005.    Certain markets prohibited.
7    A provider may not permit a person to open a speculative
8 position on:
9(1)   a sporting event, if a participant is a minor child
10    or competes for a high school team;
11(2)   the health status of an individual; or
12(3)   a death market.
13 § 2006.    Material nonpublic information and market manipulation.
14    (a)    Detection measures.--A provider shall implement a
15 commercially reasonable and technically feasible measure that
16 detects and prevents fraudulent or manipulative conduct,
17 including prediction market manipulation, material nonpublic
18 information or fraud.
19    (b)    Applicability.--If the provider detects potential
20 manipulation, material nonpublic information or fraud, the
21 provider shall report the detection to the Attorney General and,
22 if appropriate, to law enforcement.
23 § 2007.    Individual liability.
24    (a)    Unfair advantage.--No person shall, directly or
25 indirectly, knowingly or recklessly, use material nonpublic
26 information or engage in fraudulent or manipulative conduct to
27 obtain a financial benefit through a prediction market,
28 including by:
29(1)   participating in a prediction market in which a
30    person has the ability to influence or control the outcome;
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1    or
2(2)   providing the information to another person,
3    including through an intermediary or agent, for the purpose
4    of trading or otherwise benefiting from the prediction
5    market.
6    (b)    Prohibited acts.--For the purposes of this section,
7 prohibited acts include participation in a prediction market by
8 a person who, by virtue of the person's role, employment,
9 position or relationship, has access to material nonpublic
10 information or the ability to influence the outcomes of the
11 prediction market, including an athlete, coach, team or league
12 employee, owner, official, contractor, consultant, third-party
13 vendor or service provider, media person, public official,
14 candidate for public office, campaign staff person and an
15 immediate family member or agent of the person, including an
16 individual acting in coordination with another person or through
17 an intermediary.
18 § 2008.    Prediction platform market liability.
19    A provider that knowingly violates this chapter or fails to
20 implement commercially reasonable safeguards as required under
21 section 2006 (relating to material nonpublic information and
22 market manipulation), shall be subject to a penalty in
23 accordance with section 2010 (relating to penalties).
24 § 2009.    Enforcement.
25    The Attorney General, or the appropriate district attorney,
26 may bring an action to enforce this chapter against a person or
27 provider that violates this chapter.
28 § 2010.    Penalties.
29    (a)    Civil penalty.--Except as provided under paragraph (1)
30 or (2), a provider that violates this chapter, or a regulation,
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1 rule or order adopted under this chapter, shall be liable for a
2 civil penalty not to exceed $10,000 for each violation. If a
3 court of competent jurisdiction determines that the provider has
4 engaged in persistent course of conduct in violation of this
5 chapter, the court may impose a civil penalty not to exceed
6 $50,000 for each violation. If the court finds that:
7(1)   A provider violates section 2003 (relating to
8    participation exclusions), 2004 (relating to market making
9    restrictions) or 2006 (relating to material nonpublic
10    information and market manipulation), the civil penalty shall
11    be the greater of either two times the profits derived from
12    the prediction market or $50,000.
13(2)   A person violates section 2007 (relating to
14    individual liability), the civil penalty shall be the greater
15    of $50,000 or two times the amount of the profits gained or
16    losses avoided from the market.
17    (b)   Injunctive relief.--
18(1)   If the Attorney General believes, from evidence,
19    that a provider has engaged in a persistent course of conduct
20    in violation of this chapter, the Attorney General may bring
21    an action in a court of competent jurisdiction to issue an
22    injunction to enjoin and restrain the continuation of the
23    violation. In such action, the court shall order the
24    prediction market platform provider to cease operations in
25    this Commonwealth.
26(2)   If a provider continues to operate in this
27    Commonwealth after an injunction is issued under paragraph
28    (1), the provider shall be subject to a civil penalty of
29    $1,000,000 per day that the provider operates in violation of
30    the order.
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1    (c)    Defense.--A provider does not have a defense to an
2 action under this section that the service does not charge a
3 participant money or earn profit from the service.
4    (d)    Construction.--Nothing in this chapter shall be
5 construed to preclude criminal prosecution under another law of
6 this Commonwealth.
7 § 2011.   Rulemaking authority.
8    The Attorney General may promulgate rules and regulations to
9 administer and enforce this chapter.
10 § 2012.   Severability.
11    The provisions of this chapter are severable. If any
12 provision of this chapter or its application to any person or
13 circumstance is held invalid, the invalidity shall not affect
14 other provisions or applications of this chapter which can be
15 given effect without the invalid provision or application.
16    Section 2.    This act shall take effect in 60 days.
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