New York lawmaker reintroduces bill to regulate prediction markets, sparking debate

A New York state lawmaker has reintroduced legislation to regulate betting on prediction markets, proposing new licensing and oversight.

Lawmakers in New York are turning their attention to the rapidly evolving world of prediction markets, introducing legislation to regulate wagering on future events and to tighten oversight of platforms that allow betting on political, geopolitical, and economic outcomes.

The effort reflects growing concerns among regulators about how these markets operate, how outcomes are defined, and whether participants are adequately protected under existing law, especially after high-profile controversies involving prediction platforms in recent months.

A New Bill Targets Prediction Market Betting

Rep. Chris Burdick, a Democrat representing parts of Westchester County and the Hudson Valley, has reintroduced a bill in the New York State Legislature designed to bring prediction markets into a clear regulatory framework within the state.

The legislation would require platforms offering predictive event wagering to obtain a state gaming license, adhere to consumer-protection standards, and meet reporting requirements similar to those for other forms of legal gambling.

According to the bill text and sponsor statements, the proposal would:

  • Define prediction market wagering as a form of regulated betting under New York’s gaming code.
  • Establish licensing requirements for platforms that allow residents to bet on event outcomes ranging from elections and public policy actions to economic data releases.
  • Mandate consumer protections and disclosures aimed at reducing the risk of harm to participants, including mechanisms for self-exclusion and responsible gaming.
  • Require reporting and transparency from operators regarding handle, payouts and suspicious activity.

Supporters argue the measure would modernize state oversight and create a level playing field with existing gaming verticals, such as sports betting and online casino games, which are already licensed and regulated.

Why Lawmakers Are Focusing on Prediction Markets Now

Prediction markets have grown rapidly, attracting mainstream attention as platforms allow users to bet on the likelihood of events spanning politics, entertainment, economics, and even public health outcomes. However, they remain in a regulatory grey zone in many states, including New York, leading to questions about legality, taxation, and consumer safeguards.

Platform operators have previously argued that prediction markets differ from traditional gambling because many offer social-gaming structures or tokenized settlement mechanisms, some of which operate on blockchain networks.

But critics contend that when real money or monetary equivalents are at stake and outcomes are determined by real-world events, consumer protections and licensing oversight should apply.

The issue gained further urgency after major mainstream platforms faced public backlash and regulatory scrutiny over how certain markets were settled, most notably bets tied to geopolitical outcomes.

That environment has lawmakers and gaming regulators exploring whether current frameworks sufficiently address risk, fairness, and oversight.

Industry Reaction and Debate

The proposal has elicited mixed responses from industry observers and blockchain proponents. Supporters of regulatory clarity see the bill as a way to legitimize prediction markets while protecting consumers.

They argue that regulation would deter unlicensed offshore operators and bring transparency to a space that overlaps with existing wagering laws.

However, critics, including some operators and free-market advocates, warn that overly prescriptive regulation could stifle innovation, drive operators out of state, or push users toward unregulated platforms.

Prediction markets often draw on decentralized ledger technology and global participation, making jurisdictional enforcement more complex than for land-based gaming.

Questions also remain about how regulators would define permissible markets, how outcomes would be adjudicated for certain types of bets, and how taxation and consumer safeguards would be implemented without creating undue barriers to entry.

Where the Bill Goes Next

The reintroduced bill now awaits committee referral and hearings as the New York Legislature convenes for the 2026 session.

Lawmakers will likely hear testimony from regulatory officials, industry representatives, advocacy groups, and consumer-protection organizations as they evaluate the merits and potential impacts of the proposal.

If the bill advances, it could become one of the first state efforts to explicitly legislate prediction markets, setting a precedent that other states may closely watch. Conversely, strong industry pushback or concerns over enforcement feasibility could dampen momentum.

Either way, the conversation underway in Albany underscores how lawmakers are grappling with new forms of wagering that blur lines between gaming, finance, and technology, and the need for clear policy frameworks in an increasingly digital wagering economy.

Bridging Innovation and Consumer Protection

New York’s push to regulate prediction markets represents a significant moment in the evolution of wagering law. By proposing licensing, standards and oversight, lawmakers aim to bring transparency and accountability to a rapidly evolving sector that currently operates in uncertain regulatory terrain.

As the legislative session progresses, the debate will likely intensify over how to balance innovation, consumer protection, and market integrity, a balance that could influence not only New York’s gaming landscape but also the broader national trajectory of prediction market regulation.