New York Bill to Ban Sports and Political Prediction Markets
New York Assemblyman Clyde Vanel has reintroduced the Oversight and Regulation of Activity for Contracts Linked to Events (ORACLE) Act to the State Assembly, seeking to limit which event contracts prediction platforms such as Kalshi and Polymarket can offer. The measure was first filed in November and was resubmitted on Wednesday.
The bill would prohibit sports event contracts tied to the outcome of specific games, such as regular-season NFL matchups, while permitting markets on season or league outcomes, including the winner of the Super Bowl. It would also bar proposition bets that focus on game details or individual players, such as the first team to score.
Prediction markets have expanded over the past year, with sports driving a significant portion of activity. Research from Foresight Ventures estimates that up to 90% of Kalshi’s volume has been linked to sports. Data from Token Terminal indicate that monthly trading volumes on Polymarket and Kalshi have climbed to record levels in recent months.
The proposal further seeks to ban markets related to politics, deaths, and catastrophic events. Markets enabling wagers on elections or government actions would be prohibited, as would those involving war, state or national emergencies, natural or human-made disasters, mass shootings, acts of terrorism, or public health crises.
The bill would also prohibit so-called “death markets” that allow bets on the death or killing of individuals, and would bar markets that facilitate speculation on the share price of a publicly traded company.
Platforms would be required to implement user-protection measures, including self-exclusion options and tools to limit time and spending. Operators that continue offering restricted markets in New York after being ordered to stop would face fines of $1 million per day until they comply.
Prediction market firms have faced regulatory scrutiny in multiple states, with authorities asserting that they must obtain gambling licenses. Kalshi has filed lawsuits against several state gambling regulators, including the New York State Gaming Commission, arguing that its markets fall under federal oversight.
Stay informed, read the latest news right now!
Disclaimer
The content on TrustsCrypto.com is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are highly volatile, always do your own research before making decisions.
Some content may be assisted by AI and reviewed by our editorial team, but accuracy is not guaranteed. TrustsCrypto.com is not responsible for any losses resulting from the use of information provided.
