Pennsylvania HB 2711 Targets Prediction Market Trading

Jonathan Rodriguez

Written by: Jonathan Rodriguez

Published: Mon Jul 27, 2026, 7:00 am ET

Read Time: 4 minutes

Pennsylvania HB 2711 Targets Prediction Market Trading

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Pennsylvania lawmakers have introduced House Bill 2711 (HB 2711), a bipartisan proposal targeting prediction market activity across the state.

State Rep. Tarik Khan, D-Philadelphia, introduced the bill with support from lawmakers in both parties. The proposal would create a new "Prediction Markets" chapter under Title 4 of Pennsylvania's Consolidated Statutes.

That title already governs the state's casino and gaming industry. Therefore, HB 2711 could bring prediction markets into a broader Pennsylvania gambling regulatory framework.

The bill arrives as prediction markets expand across the United States. These platforms offer contracts tied to real-world events, including sports, elections, and economic developments.

Their growth has also created new regulatory concerns. Unlike licensed US online sportsbooks, federally regulated prediction markets currently operate under a different framework.

HB 2711 would establish state-level safeguards while targeting insider trading and market manipulation. The legislation has been referred to the House Consumer Protection, Technology and Utilities Committee.

HB 2711 Targets Insider Trading and Consumer Protection

The bill would prohibit individuals from using material nonpublic information to gain financially through prediction markets.

It would also target fraudulent or manipulative conduct that could distort market outcomes. The legislation states:

"No person shall, directly or indirectly, knowingly or recklessly, use material nonpublic information or engage in fraudulent or manipulative conduct to obtain a financial benefit through a prediction market."

The bill would also establish significant civil penalties for individuals who engage in insider trading.

A person found liable could face a fine of at least $50,000. Alternatively, the penalty could equal twice the profits gained or losses avoided.

That provision would give authorities a powerful tool against individuals who exploit confidential information. It could also discourage people with direct access to market information from trading on prediction platforms.

Additionally, operators would need commercially reasonable and technically feasible measures against fraud and manipulation. They would also have responsibilities to detect and report suspicious activity.

The proposal would further prohibit markets involving health status, death, and sports below the collegiate level. These restrictions would limit contracts involving particularly sensitive events or vulnerable participants.

Regulatory Safeguards Would Restrict Certain Users

HB 2711 would prevent several groups from using prediction markets in Pennsylvania.

The restrictions would cover anyone under 21-years-old and self-excluded individuals. Platform insiders would also face restrictions under the proposed framework.

Furthermore, people tied to market outcomes would be barred from participating. This provision could affect individuals with direct access to information that could influence an event.

The bill would also require operators to develop systems that identify suspicious activity. Operators would then report potential violations to the Pennsylvania Attorney General and law enforcement.

These safeguards aim to prevent participants with unfair advantages from profiting through prediction markets. They also establish standards that differ from the current approach used by federally regulated platforms.

Pennsylvania Could Impose Significant Penalties on Noncompliant Operators

HB 2711 would create a tiered civil penalty system for operators that violate the proposed rules.

Initial violations could result in civil penalties of up to $10,000 per offense. Courts could raise that amount to $50,000 per violation for persistent violations.

The Attorney General could also seek an injunction against an operator. Such an order could force the platform to stop operating in Pennsylvania.

If an operator continued serving Pennsylvania users despite a court order, the bill would allow penalties of up to $1 million per day.

That enforcement mechanism would create substantial financial risks for platforms that ignore state requirements. It could also encourage operators to resolve compliance issues before violations escalate.

Pennsylvania Takes a More Direct Approach to Prediction Markets

Pennsylvania already operates a mature gambling market with casinos, online gaming, and legal sports betting.

The state's existing market includes licensed sportsbooks that operate under state rules. Prediction markets, meanwhile, have expanded into areas that sometimes overlap with traditional sports wagering.

That overlap has intensified debates about consumer protections and regulatory authority. Some prediction markets now offer sports-related contracts that resemble products available through traditional sportsbooks.

Pennsylvania's approach also differs from strategies emerging in other states. Minnesota has pursued efforts to ban certain prediction market contracts, while Illinois and Kentucky have focused on taxing them.

HB 2711 instead takes a more operational regulatory approach. It would establish rules for market access, integrity controls, suspicious activity monitoring, and enforcement.

The proposal could therefore reshape the state's market if lawmakers advance it. Operators would face new responsibilities involving user eligibility, market integrity, suspicious activity, and compliance.

For consumers, the bill would create a more defined set of protections. For prediction market operators, it could introduce significant operational changes.

HB 2711 now awaits further consideration in the House committee process. Its progress could provide an important indication of how Pennsylvania lawmakers view prediction markets within the state's broader gambling environment.

Jonathan Rodriguez
Jonathan Rodriguez

Jonathan is an avid basketball fan, and is often looking forward to the next upcoming NBA season when not checking players' stats during games. He also likes to keep his ears on the ground for the latest rumblings in the online casino industry.

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