New Pennsylvania Bill Introduces Regulatory Framework for Prediction Markets

Pennsylvania lawmakers have introduced HB 2711, a bill that would create the state’s first regulatory structure for prediction markets.

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The proposal, filed on Wednesday by Representative Tarik Khan and sent to the Consumer Protection, Technology and Utilities Committee, lays out how platforms can operate, who can participate, and what types of markets would be off limits. 

The measure treats prediction markets as a regulated activity under Title 4 and gives the Attorney General broad authority to enforce the rules, issue penalties, and shut down platforms that ignore state law.

The bill also defines the basic terms that would govern the industry, including “prediction market,” “speculative position,” “provider,” and “liquidity provider,” setting the foundation for a system that would oversee trading on future events.

Lawmakers propose 21 age limit 

HB 2711 sets strict access rules for prediction market platforms. Providers would be barred from allowing anyone under 21 to open an account or take a speculative position. This is inline with the current 21+ gambling age limit in the state.

If a platform later discovers that an underage user slipped through, it would be required to suspend the account, settle all open positions, return the remaining balance, and block the user until they turn 21.

The bill also orders platforms to keep certain individuals out entirely. Providers must enforce policies that exclude self‑excluded users, employees and agents of the platform or its affiliates, people tied to settlement sources, and anyone holding insider information about a market. The board would be allowed to add more categories if needed. 

HB 2711 places limits on who can act as a market maker. Platforms would not be allowed to offer markets that rely on liquidity providers who “knowingly engage in a gaming activity in the ordinary course of business, whether within or outside this Commonwealth.” 

The same restriction applies to affiliates, subsidiaries, parent companies, joint ventures, and anyone acting for their benefit. 

Providers would also be prohibited from entering revenue‑sharing agreements with companies involved in gaming. 

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Death markets and college sports trading banned

The bill blocks several types of markets outright. Providers would be prohibited from offering speculative positions on sporting events involving minors or high school teams, on the health status of an individual, or on what the bill defines as a “death market.” 

A death market is described as one that “enables a person to open a speculative position on the death, assassination or attempted killing of an individual or on a mass casualty event.” 

HB 2711 also requires platforms to install systems capable of detecting fraud, manipulation, and misuse of material nonpublic information. Individuals who use inside information or manipulate markets would face direct liability. 

Operators could face fines reaching $1 million per day

HB 2711 gives the Attorney General and district attorneys the power to enforce the law. Most violations would carry civil penalties of up to $10,000 per offense, rising to $50,000 if a court finds a pattern of misconduct.

Individuals who violate the insider‑trading section would face penalties of “the greater of $50,000 or two times the amount of the profits gained or losses avoided from the market.” 

The AG would also be able to seek injunctions against platforms that repeatedly violate the law. If a court orders a provider to stop operating in Pennsylvania and the platform continues to run, it would face a penalty of “$1,000,000 per day that the provider operates in violation of the order.” 

A severability clause ensures that if one part of the law is struck down, the rest can remain in effect. The act would take effect 60 days after passage

Pennsylvania joins Kentucky, North Carolina, and Illinois as states that have pushed to introduce a regulatory framework for prediction markets.

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