Pennsylvania highway signs read “Pennsylvania Welcomes You.” Now, the state may be rolling out the welcome mat for prediction markets as well.
The Keystone State is taking a significant step into the future of online betting and financial-style trading with House Bill 2711 (HB 2711). The bipartisan measure, introduced by Rep. Tarik Khan, would establish Pennsylvania’s first regulatory framework for prediction markets and event contracts.
If passed, HB 2711 would position Pennsylvania as a national leader in the fast-growing prediction market space—building on the state’s already dominant online casino market.
What Is HB 2711?
HB 2711 proposes adding a new chapter to Pennsylvania’s existing gaming laws under Title 4 (Amusements). This chapter would define and regulate prediction markets—platforms where users trade on the outcome of real-world events using market-style pricing.
Unlike traditional sports betting, these prediction market platforms often function more like financial exchanges. Users can buy and sell positions based on what they think will happen in politics, sports, economics, or other events.
The bill has already gained strong bipartisan support, with around two dozen co-sponsors from both parties. It is currently under review by the House Committee on Consumer Protection, Technology and Utilities.
Key Features of the Bill
Clear Definitions and Structure
HB 2711 sets clear legal definitions for terms like “prediction market,” “provider,” and “market maker.” This creates a structured framework that has been missing in many states.
Strict Age Requirements
Only individuals aged 21 and older would be allowed to participate. Platforms must verify user age and block underage access. If violations occur, accounts must be suspended and funds returned.
Limits on Who Can Participate
The bill restricts access for certain groups, including platform employees, insiders, and individuals with nonpublic information. Self-excluded users are also barred from participating.
Banned Markets
Not all prediction markets would be allowed. The bill prohibits contracts involving:
- High school or youth sports
- Personal health conditions
- Death-related events, such as assassination or mass casualty scenarios
These restrictions aim to prevent unethical or harmful speculation.
Sports Contracts Are Allowed
One of the most notable aspects of HB 2711 is that it explicitly allows sports-related event contracts. This sets Pennsylvania apart from states that have taken a stricter stance.
Anti-Insider Trading Measures
The bill includes strong rules against market manipulation and insider trading. Athletes, coaches, officials, and even media members are prohibited from trading on insider knowledge or influencing outcomes.
Platform operators must monitor activity and report suspicious behavior.
Market Maker Restrictions
Liquidity providers, or market makers, face limits—especially if they are tied to traditional gaming businesses. This is designed to reduce conflicts of interest.
Enforcement and Penalties
HB 2711 gives enforcement power to the Pennsylvania Attorney General and local district attorneys. Penalties include:
- Up to $10,000 per violation
- Up to $50,000 for repeated offenses
- Higher fines for insider trading or manipulation, potentially double the profits gained
- Court-ordered injunctions, with fines reaching $1 million per day for ongoing violations
The bill does not introduce a new tax on prediction market trading, which could make Pennsylvania more attractive to operators.
Why This Matters for the Industry
Prediction markets like Kalshi and Polymarket already operate under federal oversight through the Commodity Futures Trading Commission (CFTC). However, state-level rules have been inconsistent, with some states attempting bans or heavy restrictions.
HB 2711 takes a middle-ground approach. It allows these platforms to operate while adding clear consumer protections and integrity rules. This could help legitimize the industry and reduce the “Wild West” perception that has surrounded prediction markets.
For operators, this means a clearer path to compliance. For users, it offers more protection and transparency.
What Happens Next to Prediction Markets in Pennsylvania?
Pennsylvania’s HB 2711 is still in the early stages of the legislative process. Lawmakers will review, debate, and possibly amend the bill before any final vote.
If passed, the law would take effect 60 days after enactment.
Those interested can track updates through the Pennsylvania General Assembly website or legislative tracking platforms like LegiScan.
The bill could become a model for how states regulate prediction markets. By allowing innovation while enforcing strict rules on age, access, and insider activity, the bill aims to create a safer and more transparent environment.
As prediction markets continue to grow in popularity, this type of balanced regulation may shape the future of the industry across the United States.
