Pennsylvania HB 2711: An Act amending Title 4 (Amusements) of the Pennsylvania Consolidated Statutes, providing for prediction markets; and imposing civil penalties.

Bill Text

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
Amending Title 4 (Amusements) of the Pennsylvania Consolidated
Statutes, providing for prediction markets; and imposing
civil penalties.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 4 of the Pennsylvania Consolidated Statutes
is amended by adding a chapter to read:
CHAPTER 20
PREDICTION MARKETS
Sec.
2001. Definitions.
2002. Age restrictions.
2003. Participation exclusions.
2004. Market making restrictions.
2005. Certain markets prohibited.
2006. Material nonpublic information and market manipulation.
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2007. Individual liability.
2008. Prediction platform market liability.
2009. Enforcement.
2010. Penalties.
2011. Rulemaking authority.
2012. Severability.
§ 2001. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Bid-ask format." A method that a party uses to submit an
offer to buy a speculative position on a prediction market at a
specific price or range of prices and an offer to sell a
position at a specific price or range of prices, with market
prices determined through the matching of the offer.
"Death market." A prediction market that:
(1) Enables a person to open a speculative position on
the death, assassination or attempted killing of an
individual or on a mass casualty event.
(2) Does not include a prediction market in that the
outcome could indirectly depend on a death as a consequence
of a person's inclusion in the market.
"Liquidity provider" or "market maker." A person that,
directly or indirectly, and whether manually or through
automated means, offers to buy or sell a position in a
prediction market with the primary purpose of facilitating
trading, supporting price discovery or maintaining market
liquidity by posting a bid and asks.
"Material nonpublic information." Information that:
(1) A reasonable prediction market platform user would
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consider important in opening a speculative position.
(2) Is not publicly available.
"Prediction market." A market that uses a mechanism or
structure that allows a person to open a speculative position on
an outcome of a future event in a bid-ask format.
"Prediction market platform." A platform or service that
provides access to a prediction market.
"Provider." An entity that owns or operates a prediction
market platform.
"Settlement source." A person that provides a prediction
market platform information to determine the outcome of a
market.
"Speculative position." A financial commitment made by a
person participating in a prediction market.
"Sporting event." Shall have the same meaning given to it in
section 13C01 (relating to definitions).
§ 2002. Age restrictions.
(a) Account restriction.--A provider may not permit an
individual under 21 years of age to open an account and take a
speculative position on the prediction market platform.
(b) Remedy.--If the provider inadvertently violates
subsection (a) and the provider discovers the violation, the
provider shall:
(1) Immediately suspend the account.
(2) Close all speculative positions on the account.
(3) Pay out to the individual any money in the account.
(4) Prohibit the individual from further participation
until the individual attains 21 years of age.
§ 2003. Participation exclusions.
A provider shall maintain and enforce policies to exclude the
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following individuals from participating in the prediction
market platform:
(1) An individual who has self-excluded from using the
prediction market platform.
(2) An officer, director, employee or agent of the
provider or the affiliated company of the provider.
(3) An officer, director, employee or agent of a person
who provides a settlement source.
(4) An individual who has insider information on a
particular market.
(5) Any other category of individuals the board deems
necessary to exclude.
§ 2004. Market making restrictions.
(a) Timing prohibition.--
(1) 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, whether within or outside this Commonwealth.
(2) Paragraph (1) applies to an affiliated entity,
subsidiary, parent company, joint ventur