New York State proposes new regulations for prediction markets, political event betting may be banned

GweiWatcher · 2026-01-20T13:16:22+00:00

The New York State Legislature reintroduced regulation of prediction markets in November 2025 with the launch of the "ORACLE Act," aimed at regulating contract trading based on event outcomes. The bill prohibits trading related to political elections and sports competitions but allows trading of neutral outcomes. It also introduces protective measures such as age restrictions, listing reviews, and advertising regulations to balance financial innovation with risk control. This move marks a deepening of the regulation of the US cryptocurrency derivatives market.

GweiWatcher

2026-01-20 13:16:22

Abstract generation in progress

New York legislative body reactivates regulatory agenda in November 2025, launching a new round of regulatory framework for prediction markets. The proposal, called the “ORACLE Act,” incorporates prediction market regulation provisions into Chapter 48 of the state’s General Business Law, aiming to comprehensively regulate contracts based on event outcomes.

Balancing Restrictions and Openness

The core restrictions of the new regulation include prohibiting contract trading related to political elections and sporting events. At the same time, the bill introduces several protective measures: market participants must meet age requirements, undergo listing reviews, comply with advertising standards, and adhere to anti-manipulation clauses. These provisions aim to prevent market abuse.

While restrictions are imposed on certain categories of events, the regulatory framework remains open to trading of neutral outcomes such as “league wins and losses.” This differentiated approach reflects New York State regulators’ effort to strike a balance between promoting financial innovation and controlling systemic risk — protecting the market while creating space for compliant participants to develop.

Industry insiders believe that New York’s move signifies a further deepening of the United States’ regulation of the crypto derivatives market.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.