New York lawmaker moves to regulate prediction markets in new bill

A new bill from Assemblyman Clyde Vanel would give lawmakers the power and framework to regulate prediction markets in the state of New York.

Vanel’s Bill A.B. 9251 was revealed on Friday (November 7) with the official purpose “to amend the general business law, in relation to prediction markets”. This comes amid rising concerns in New York and beyond that prediction markets are a way to sidestep state gambling laws, particularly around sports betting.

Specifically, the bill would require far more regulation for prediction markets than they’ve faced so far in New York, banning them from offering contracts on sporting events, banning market makers, and requiring restrictions regarding age, advertising, and credit-based products.

JUST IN: New York bill would severely curtail prediction markets by banning PMs on sporting events, ban market makers, require RG safeguards, and raise minimum age to 21. Would empower AG to impose $50K/violation and $1m/day civil penalties and obtain 2x disgorgement of profits. pic.twitter.com/FLCJSdgcNH

— Daniel Wallach (@WALLACHLEGAL) November 8, 2025

Those safeguards echo those already in place for traditional gambling companies, highlighting an evolving perspective on prediction markets being an alternative form of gambling. The bill would also empower the New York Attorney General to enforce penalties on prediction markets that don’t adhere to the proposed regulations. That could range up to a $50,000 fine per violation and $1 million per day in civil penalties in certain suggested circumstances.

A case in point of New York’s legal battles with prediction markets is recent events with Kalshi, with the prediction market suing the New York Gaming Commission just last month. Although online sports betting is allowed in New York, prediction markets with sporting contracts like Kalshi are seen by some as running unlicensed sports betting in a legal gray area.

Legal expert Daniel Wallach pointed out that the bill would need New York Senator Joseph Addabbo Jr.’s backing to have a shot. Writing on X, he added: “Since he’s not a sponsor, too soon to tell. Legislative session doesn’t even begin until January.” Addabbo Jr. has been vocal about his opposition against illegal casinos in the state.

That hasn’t stopped Kalshi and other competitors leaping from strength to strength in terms of market shares and valuations. For its part, Kalshi has argued in court that its event-based contracts fall under the CFTC’s jurisdiction, rather than any state gaming laws, including New York’s. At the time of writing, Kalshi has already filed federal lawsuits in Maryland, Nevada, New Jersey, and Ohio to block state enforcement actions.

Featured image: Wikimedia Commons, licensed under CC BY-SA 4.0

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