Pennsylvania Bill Bans Gambling Firms from Prediction Market Making

HB 2711 prohibits sportsbooks from acting as liquidity providers on prediction platforms, bars revenue sharing with gambling entities, and sets strict participation rules.

Woofun AI reports that Pennsylvania legislators introduced HB 2711 to ban sportsbooks and gambling companies from serving as market makers or liquidity providers on prediction platforms. The legislation, filed by Representative Tarik Khan on July 22, also forbids prediction platforms from contracting with or sharing revenue with gambling enterprises, including their subsidiaries and affiliates. DraftKings and Flutter have previously operated in this space, with DraftKings launching the DKeX exchange after acquiring Railbird Technologies.

The bill mandates a minimum participation age of 21 and requires platforms to exclude self-excluded users, employees, and individuals holding material non-public information. Platforms must implement measures to prevent fraud and manipulation, while markets involving high school sports, minors, personal health, or death events are prohibited. Enforcement falls to the state Attorney General, as the proposal does not create a licensing system. A companion bill, HB 2497, would require licensing and impose a 22% tax, though neither measure has yet received a committee vote.