NY State Senate Bill 2025-S9414

Current Bill Status - In Senate Committee Racing, Gaming And Wagering Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 10, 2026	referred to racing, gaming and wagering

2025-S9414 (ACTIVE) - Details

See Assembly Version of this Bill:: A9251
Current Committee:: Senate Racing, Gaming And Wagering
Law Section:: General Business Law
Laws Affected:: Add Art 48 §§1800 - 1813, Gen Bus L; add §913, RWB L

2025-S9414 (ACTIVE) - Summary

Enacts the oversight and regulation of activity for contracts linked to events (ORACLE) act to provide for requirements and restrictions on prediction markets.

2025-S9414 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S9414

SPONSOR: ADDABBO
 
TITLE OF BILL:

An act to amend the general business law and the racing, pari-mutuel
wagering and breeding law, in relation to prediction markets

 
PURPOSE OR GENERAL IDEA OF BILL:

Authorizes the Office of the Attorney General to promulgate rules and
regulations on prediction market platforms.

 
SUMMARY OF PROVISIONS:

Section 1:

§ 1800: Short title. § 1801: Definitions.

§ 1802: Age restrictions. Prohibits users under the age of twenty-one
from participating in prediction markets.

§ 1803: Exclusions from participation. Defines who is prohibited from
using prediction market platforms, including but not limited to persons
with insider knowledge on a particular prediction market, any agent of
an affiliated company or settlement provider, and persons that have
self-excluded from using such platforms.

§ 1804: Certain markets prohibited. Prohibits prediction markets from
offering speculative positions on political markets, death markets,
catastrophic events, security events and sporting events.

§ 1805: Settlement sources. Requires prediction markets to disclose
where they received their settlement sources and requires that settle-
ment information is available for consumers to access.  Additionally,
this section prohibits providers from settling markets based on confi-
dential or propriety information.

§ 1806: At-risk trading measures. Requires prediction markets to imple-
ment consumer and at-risk trading safeguards such as self-exclusion
procedures, voluntary wagering or time limits, and problem gambling
hotline disclosures. Additionally, this section requires providers to
implement training for employees to recognize and address at-risk trad-
ing.

§ 1807: Advertising restrictions. Establishes rules for advertising such
as prohibiting false and misleading advertising, requiring the NY prob-
lem gambling hotline be included in advertisements and clearly disclos-
ing terms and conditions associated with any bonus, free credits and
referral rewards.

§ 1808: Restrictions on credit-based products and gift certificates.
Bans platforms from selling gift certificates related to their platforms
and prohibits platforms from accepting credit cards or credit products
to deposit additional funds on their platforms.

§ 1809: Restrictions on market making. Forbids prediction market provid-
ers from offering markets that involve, directly or indirectly, any
person or entity engaged in gaming activities, whether as a liquidity
provider, market maker, or revenue partner, including their affiliates,
subsidiaries, or agents.

§ 1810: Certain contract provisions void. Prohibits a platform from
altering or eliminating their terms and conditions in a way that would
violate this article. Terms and conditions that violate this article are
void.

§ 1811: Insider trading and market manipulation. Requires platforms to
develop mechanisms that detect and prevent insider trading and report
such activity to the Attorney General and law enforcement where appro-
priate. §

§ 1812: Penalties. Establishes penalties for any violation of this arti-
cle. § 1813: Rulemaking authority. Authorizes the Attorney General to
promulgate rules and regulations.

Section 2:

913: Definitions

913(2): Amends the racing, pari-mutuel wagering, and breeding law to
provide the commissioner of gaming with jurisdiction over entities who
have licenses within the state to penalize such entities for engaging in
prediction market activities

913(3): Provides for penalties Or attorney

913(4): Permits enforcement concurrently with the state police general
for concurrent violations of the law.

Section 3: Severability clause. Section 4: Effective Date.

 
DIFFERENCE BETWEEN ORIGINAL AND AMENDED:

1. Makes technical amendments to various sections of the bill.

2. Provides concurrent enforcement mechanisms between the attorney
general and the commissioner of gaming.

3. Provides the commissioner of gaming with the ability to penalize
licensed wagering entities who engage in prediction market activities.

4. Amends the terms "problem gambling" to "at-risk trading".

5. Adjusts the definition of "prediction market platform".

 
JUSTIFICATION:

Like the pre-flipper pinball machines, sweepstakes cafes, sweepstakes
gambling, and many other schemes that preceded it, prediction markets
have rebranded old-fashioned wagering as "trading," inviting the public
to buy and sell positions on real-world events with an expected payoff.
These range from who wins an election, how a court rules, how destruc-
tive a natural disaster will be, even whether someone lives or dies. Yet
whatever wrapper prediction markets are placed in does not change the
substance. The constant throughline throughout history is simple: when a
product hits the three classic elements - consideration, prize, and
chance- states can treat it as gambling regardless of the label. Predic-
tion markets are the latest wrapper.

These prediction market products that are bets sold to consumers have
consequences that can flow from them which are immense. For instance,
insiders can trade on embargoed information and entire markets can be
influenced by a single actor. It turns everyday people into insiders who
can, if they choose, profit from their knowledge. We are already seeing
large, last-minute positions placed just before announcements and "one-
person" markets where the subject effectively controls the result. For
example, markets such as "What will (x) say during their speech?" or
"How many tweets will (x) make in the next month?"

A major part of the State's legitimate interest is to protect the integ-
rity of its own regulatory framework. Our wagering laws and licenses are
designed to provide a system that is supervised and accountable. If
large national platforms can sidestep that system by offering the same
or a broader array of bets to our residents without a license or state-
level consumer protections, then our licensing regime becomes practical-
ly meaningless. Sports wagering volume on regulated platforms has been
rapidly overshadowed by volume on prediction markets who offer the same
bets. This sort of regulatory arbitrage undercuts compliant in-state
operators and deprives the public of responsible-gaming safeguards that
the state government and problem gambling groups have identified as
necessary for consumers.

Certain categories of bets are flatly contrary to public policy.  Wagers
on elections commoditize public office, incentivize misconduct, and
corrode confidence in democratic outcomes. Bets on, crime, terrorism,
war, disease, natural disasters, or death turn human suffering into a
profit center and create harmful incentives.  Markets tied to individual
mortality are perverse, and markets tied to fluctuations in specific
securities or financial indices invite manipulation and destabilize
confidence in legitimate financial systems. Markets on pending judicial,
regulatory, or law-enforcement actions undermine institutional independ-
ence and invite exploitation by those with inside roles.

The State not only can regulate these markets, but it must. Regulating
gambling, contracts, and unfair or deceptive practices lies at the core
of state police powers to protect health, safety, and welfare.  Offering
bets to residents, however they are called, falls squarely within that
authority. Federal commodities laws do not convert public wagering on
news, elections, or disasters into federally protected "financial
products," nor do they strip states of their historic authority over
gambling and consumer protection. Courts have recognized as much. The
fact that these markets are not based on a financial or economic inter-
est, and that they are self-certified and listed rarely without CFTC
intervention is highly suspect.

This bill does not outlaw innovation. It prohibits predatory and poli-
cy-offensive markets. It protects consumers, preserves election and
market integrity, and ensures our states' licensing system actually
means something. It ensures that it means something not just for opera-
tors who play by the rules, but for the residents those rules are meant
to protect.

 
PRIOR LEGISLATIVE HISTORY:

None.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
This act shall take effect one year after.it shall have become law.

2025-S9414 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9414
 
                             I N  S E N A T E
 
                              March 10, 2026
                                ___________
 
 Introduced  by  Sen. ADDABBO -- read twice and ordered printed, and when
   printed to be committed to the Committee on Racing, Gaming and  Wager-
   ing
 
 AN  ACT  to  amend  the general business law and the racing, pari-mutuel
   wagering and breeding law, in relation to prediction markets
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general business law is amended by adding a new article
 48 to read as follows:
                                 ARTICLE 48
                            PREDICTION MARKETS
 SECTION. 1800. SHORT TITLE.
          1801. DEFINITIONS.
          1802. AGE RESTRICTIONS.
          1803. EXCLUSIONS FROM PARTICIPATION.
          1804. CERTAIN MARKETS PROHIBITED.
          1805. SETTLEMENT SOURCES.
          1806. AT-RISK TRADING MEASURES.
          1807. ADVERTISING RESTRICTIONS.
          1808.  RESTRICTIONS  ON  CREDIT-BASED PRODUCTS AND GIFT CERTIF-
                  ICATES.
          1809. RESTRICTIONS ON MARKET MAKING.
          1810. CERTAIN CONTRACT PROVISIONS VOID.
          1811. INSIDER TRADING AND MARKET MANIPULATION.
          1812. PENALTIES.
          1813. RULEMAKING AUTHORITY.
   § 1800. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE  CITED  AS
 THE "OVERSIGHT AND REGULATION OF ACTIVITY FOR CONTRACTS LINKED TO EVENTS
 (ORACLE) ACT".
   § 1801. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS HAVE
 THE FOLLOWING MEANINGS:
   1.  "CONSUMER"  MEANS  AN INDIVIDUAL WHO IS A RESIDENT OF THE STATE OF
 NEW YORK.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14025-03-6

 S. 9414                             2
 
   2. "PREDICTION MARKET PLATFORM" MEANS ANY  PLATFORM  OR  SERVICE  THAT
 PROVIDES  CONSUMERS  WITH  THE  ABILITY TO OPEN, CLOSE, TRADE, OR SETTLE
 SPECULATIVE POSITIONS ON PREDICTION MARKETS. A PREDICTION  MARKET  PLAT-
 FORM  SHALL  NOT  INCLUDE  A  PLATFORM OPERATED BY AN ENTITY THAT (A) IS
 LICENSED  IN  THIS STATE, (B) WOULD OTHERWISE BE REQUIRED TO BE LICENSED
 TO OPERATE IN THIS STATE, OR (C) THAT IS PROHIBITED  FROM  OPERATING  IN
 THIS STATE UNDER THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW.
   3.  "PREDICTION MARKET" MEANS A SYSTEM THAT ALLOWS CONSUMERS TO OPEN A
 SPECULATIVE POSITION ON THE OUTCOME  OF  FUTURE  EVENTS,  IN  A  BID-ASK
 FORMAT.  THIS  DEFINITION  SHALL INCLUDE ALL FORMS OF PREDICTION MARKETS
 REGARDLESS OF THE MECHANISMS OR STRUCTURES USED FOR OPENING  SPECULATIVE
 POSITIONS ON FUTURE EVENTS.
   4. "BID-ASK FORMAT" SHALL MEAN A FORMAT IN WHICH PARTIES SUBMIT OFFERS
 TO  BUY POSITIONS ON A PREDICTION MARKET AT A SPECIFIC PRICE OR RANGE OF
 PRICES AND OFFERS TO SELL POSITIONS AT A  SPECIFIC  PRICE  OR  RANGE  OF
 PRICES,  WITH  MARKET  PRICES  DETERMINED  THROUGH THE MATCHING OF THESE
 OFFERS.
   5. "CATASTROPHIC EVENT MARKET" MEANS A PREDICTION MARKET THAT  ENABLES
 A  CONSUMER TO OPEN A SPECULATIVE POSITION ON AN OUTCOME THAT RELATES TO
 WAR, STATE OR NATIONAL EMERGENCIES,  NATURAL  OR  HUMAN-MADE  DISASTERS,
 MASS SHOOTINGS, ACTS OF TERRORISM, OR PUBLIC HEALTH CRISES OR THE ANCIL-
 LARY EFFECTS THEREOF.
   6. "POLITICAL MARKET" MEANS A PREDICTION MARKET THAT ENABLES A CONSUM-
 ER TO OPEN A SPECULATIVE POSITION THAT RELATES TO:
   (A)  A  FEDERAL  ELECTION,  A  STATEWIDE  ELECTION  IN NEW YORK, OR AN
 ELECTION HELD BY A MUNICIPALITY WITHIN THE STATE; OR
   (B) THE ACTIONS OR CONDUCT OF THE FEDERAL  GOVERNMENT,  ITS  AGENCIES,
 EMPLOYEES,  OFFICERS OR LEADERS, THE NEW YORK STATE GOVERNMENT OR ANY OF
 ITS AGENCIES, EMPLOYEES, OFFICERS OR LEADERS, OR A MUNICIPAL  GOVERNMENT
 OR ANY OF ITS AGENCIES, EMPLOYEES, OFFICERS OR LEADERS IN THEIR OFFICIAL
 GOVERNMENT CAPACITY.
   7. "DEATH MARKET" MEANS A PREDICTION MARKET THAT ENABLES A CONSUMER TO
 OPEN  A  SPECULATIVE  POSITION ON THE DEATH, ASSASSINATION, OR ATTEMPTED
 KILLING OF A PERSON OR GROUP OF PERSONS, OR  ON  MASS  CASUALTY  EVENTS.
 THIS SHALL NOT INCLUDE A PREDICTION MARKET WHERE THE OUTCOME COULD INDI-
 RECTLY DEPEND ON A DEATH AS A CONSEQUENCE OF A PERSON'S INCLUSION IN THE
 MARKET,  SUCH  AS  A  LAWFUL PREDICTION MARKET WHICH DEPENDS ON A PERSON
 ENGAGING IN SOME ACTION WHERE THEIR DEATH  WOULD  NATURALLY  SETTLE  THE
 MARKET AS SUCH PERSON NOT ENGAGING IN SUCH ACTION.
   8. "SECURITY MARKET" MEANS A PREDICTION MARKET THAT ENABLES A CONSUMER
 TO  OPEN A SPECULATIVE POSITION ON THE PRICE OF A PUBLICLY TRADED COMPA-
 NY.
   9. "SPECULATIVE POSITION" MEANS  A  FINANCIAL  COMMITMENT  MADE  BY  A
 PARTICIPANT IN A PREDICTION MARKET.
   10.  "ATHLETIC  EVENT MARKET" MEANS A PREDICTION MARKET THAT ENABLES A
 CONSUMER TO OPEN A SPECULATIVE POSITION ON THE  OUTCOME  OF  A  SPECIFIC
 ATHLETIC  EVENT  OR EVENTS OR EVENTS WITHIN AN ATHLETIC EVENT OR EVENTS.
 ATHLETIC EVENTS SHALL INCLUDE HORSE RACING AND PROP BETTING.
   11. "ATHLETIC EVENT" MEANS AN ORGANIZED  COMPETITION  BETWEEN  TWO  OR
 MORE  PERSONS  OR  GROUPS  OF  PERSONS  THAT INVOLVES PHYSICAL OR MENTAL
 SKILL.
   12. "ATHLETIC TOURNAMENT" MEANS A SERIES OF ATHLETIC EVENTS  IN  WHICH
 THE  WINNERS  OF  INDIVIDUAL  EVENTS  PROGRESS  TO COMPETE IN SUBSEQUENT
 EVENTS UNTIL A FINAL OVERALL WINNER IS DETERMINED.
 S. 9414                             3
 
   13. "SETTLEMENT SOURCE" MEANS AN  ENTITY  FROM  WHICH  THE  PREDICTION
 MARKET PLATFORM OBTAINS OR SOURCES INFORMATION FOR THE PURPOSE OF DETER-
 MINING THE OUTCOME OF A MARKET.
   14.  "LIQUIDITY  PROVIDER"  OR "MARKET MAKER" SHALL MEAN ANY PERSON OR
 ENTITY THAT, DIRECTLY OR INDIRECTLY, AND  WHETHER  MANUALLY  OR  THROUGH
 AUTOMATED  MEANS,  OFFERS TO BUY OR SELL POSITION IN A PREDICTION MARKET
 WITH THE PRIMARY  PURPOSE  OF  FACILITATING  TRADING,  SUPPORTING  PRICE
 DISCOVERY, OR MAINTAINING MARKET LIQUIDITY BY POSTING BIDS AND ASKS.
   §  1802.  AGE  RESTRICTIONS. 1. NO PREDICTION MARKET PLATFORM PROVIDER
 SHALL PERMIT ANY CONSUMER UNDER THE AGE OF TWENTY-ONE YEARS TO  REGISTER
 OR TO OPEN ANY SPECULATIVE POSITION ON A PREDICTION MARKET.
   2.  IF  THE  PROVIDER HAS INADVERTENTLY PERMITTED A USER THAT IS UNDER
 THE AGE OF TWENTY-ONE TO USE THE PROVIDER'S PLATFORM AND  SUCH  PROVIDER
 DISCOVERS  THE  ERROR,  THE  PROVIDER  SHALL  IMMEDIATELY  SUSPEND  THAT
 ACCOUNT, CLOSE ALL POSITIONS ON THAT ACCOUNT, PAY OUT  TO  THE  CONSUMER
 ANY  FUNDS  ON THE ACCOUNT, AND PROHIBIT THE INDIVIDUAL FROM FURTHER USE
 OF THE PROVIDER'S PLATFORM UNTIL SUCH CONSUMER HAS ATTAINED THE  AGE  OF
 TWENTY-ONE.
   §  1803.  EXCLUSIONS  FROM PARTICIPATION. 1. A PROVIDER SHALL MAINTAIN
 AND ENFORCE POLICIES TO EXCLUDE CERTAIN INDIVIDUALS FROM  PARTICIPATION,
 INCLUDING:
   (A) ANY PERSON WHO HAS SELF-EXCLUDED FROM USING THE PLATFORM;
   (B)  ANY  OFFICER, DIRECTOR, EMPLOYEE, OR AGENT OF THE PROVIDER OR ITS
 AFFILIATED COMPANIES;
   (C) ANY OFFICER, DIRECTOR, EMPLOYEE, OR AGENT OF A  SOURCE  SETTLEMENT
 PROVIDER;
   (D)  ANY  PERSON WHO HAS INSIDER INFORMATION ON A PARTICULAR MARKET OR
 MARKETS; AND
   (E) ANY OTHER CATEGORY OF PERSONS THE ATTORNEY GENERAL  BY  REGULATION
 DESIGNATES AS EXCLUDED.
   2.  SUCH EXCLUSION SHALL BE ENFORCED UNTIL SUCH PERSON NO LONGER MEETS
 THE CRITERIA REQUIRED FOR EXCLUSION UNDER THIS SECTION.
   § 1804. CERTAIN  MARKETS  PROHIBITED.  A  PREDICTION  MARKET  PLATFORM
 PROVIDER  SHALL NOT PERMIT NEW YORK USERS TO OPEN A SPECULATIVE POSITION
 ON THE FOLLOWING TYPES OF MARKETS:
   1. CATASTROPHIC EVENT MARKETS;
   2. POLITICAL MARKETS;
   3. DEATH MARKETS;
   4. SECURITY MARKETS; AND
   5. ATHLETIC EVENT MARKETS.
   § 1805. SETTLEMENT SOURCES. 1. EVERY PROVIDER SHALL MAINTAIN A COMPRE-
 HENSIVE LIST OF ALL SETTLEMENT SOURCES THAT THE PROVIDER USES TO  DETER-
 MINE  THE  OUTCOMES  OF THE PROVIDER'S PREDICTION MARKETS AND SHALL MAKE
 THIS LIST READILY ACCESSIBLE TO CONSUMERS AT ALL STAGES OF THE REGISTRA-
 TION PROCESS.
   2. EACH PROVIDER SHALL DISPLAY, ON EVERY  SECTION  OF  THE  PROVIDER'S
 WEBSITE  IN WHICH A PERSON CAN OPEN A SPECULATIVE POSITION ON A SPECIFIC
 PREDICTION MARKET, THE SETTLEMENT SOURCE  FOR  THE  SETTLEMENT  OF  SUCH
 MARKET.
   3. NO PROVIDER SHALL SETTLE A MARKET BASED ON PROPRIETARY OR CONFIDEN-
 TIAL INFORMATION.
   §  1806.  AT-RISK  TRADING MEASURES. 1. EVERY PROVIDER SHALL IMPLEMENT
 AND ADHERE TO RESPONSIBLE TRADING MEASURES TO PROTECT CONSUMERS WHO  MAY
 BE  AT RISK OF AT-RISK TRADING BEHAVIOR. SUCH MEASURES SHALL INCLUDE, AT
 A MINIMUM:
 S. 9414                             4
 
   (A) PROVIDING A MECHANISM BY WHICH AN INDIVIDUAL CAN VOLUNTARILY SELF-
 EXCLUDE FROM THE PLATFORM FOR A DEFINITE  OR  INDEFINITE  PERIOD.  IF  A
 CONSUMER SELF-EXCLUDES, THE PROVIDER MUST IMMEDIATELY BLOCK SUCH CONSUM-
 ER'S  ACCESS TO OPENING A SPECULATIVE POSITION AND TAKE REASONABLE STEPS
 TO PREVENT THE CONSUMER FROM CREATING NEW ACCOUNTS.
   (B)  ALLOWING CONSUMERS TO SET DAILY, WEEKLY, OR MONTHLY LIMITS ON THE
 AMOUNT THEY CAN DEPOSIT OR SPEND IN OPENING  SPECULATIVE  POSITIONS,  IF
 THEY  SO  CHOOSE.  THE PLATFORM MAY NOT ENCOURAGE CONSUMERS TO REMOVE OR
 INCREASE LIMITS ONCE SET; ANY REQUEST TO INCREASE A  SELF-IMPOSED  LIMIT
 SHALL HAVE A FOURTEEN DAY WAITING PERIOD.
   (C)  PROVIDING  FEATURES  THAT  ALLOW CONSUMERS TO LIMIT THE AMOUNT OF
 TIME SPENT ON THE  PLATFORM,  AND  PERIODIC  NOTIFICATIONS  THAT  REMIND
 CONSUMERS   OF   HOW   LONG   THEY   HAVE  BEEN  ACTIVE  AND  THEIR  NET
 SPENDINGS/WINNINGS DURING THAT SESSION.
   (D) CLEARLY POSTING AND PROVIDING THE TOLL-FREE HOPE NY HOTLINE ON THE
 PLATFORM'S WEBSITE AND APPS AND IN ANY ADVERTISEMENTS. NO OTHER  HOTLINE
 MAY BE DISPLAYED.
   (E)  ALL ADVERTISEMENTS AND MARKETING MATERIALS MUST INCLUDE A AT-RISK
 TRADING MESSAGE AND THE HOPE NY HOTLINE NUMBER IN A CLEAR AND  CONSPICU-
 OUS MANNER, CONSISTENT WITH NEW YORK LAW REQUIRING ADDICTION WARNINGS ON
 ALL ADVERTISEMENTS.
   2.  EVERY PROVIDER SHALL IMPLEMENT TRAINING FOR EMPLOYEES TO RECOGNIZE
 AND RESPOND TO INDICATIONS OF AT-RISK TRADING AND HOW  THEY  CAN  DIRECT
 CONSUMERS TO RESOURCES FOR HELP.
   3. EVERY PROVIDER SHALL IMPLEMENT POLICIES TO IDENTIFY AT-RISK TRADING
 AND SHALL, UPON MAKING A DETERMINATION THAT A USER IS ENGAGED IN AT-RISK
 TRADING, PROHIBIT ACCESS TO THE PROVIDER'S SERVICE.
   4.  EVERY  PREDICTION  MARKET  PLATFORM PROVIDER SHALL COMPLY WITH THE
 ADVERTISING STANDARDS SET FORTH IN  SECTION  EIGHTEEN-HUNDRED  SEVEN  OF
 THIS ARTICLE.
   §  1807.  ADVERTISING RESTRICTIONS. 1. ALL ADVERTISING BY A PREDICTION
 MARKET PLATFORM SHALL BE TRUTHFUL AND NOT MISLEADING.
   2. A PREDICTION MARKET PROVIDER SHALL BE PROHIBITED FROM SENDING  PUSH
 NOTIFICATIONS  TO  USERS  WHICH PERTAIN TO BONUSES OR PREDICTION MARKETS
 WHICH THE USER DOES NOT CURRENTLY HAVE AN OPEN SPECULATIVE POSITION ON.
   3. NO ADVERTISEMENT SHALL DEPICT A PERSON UNDER THE AGE OF TWENTY-ONE,
 EXCEPT INCIDENTALLY.
   4. NO ADVERTISEMENTS SHALL TARGET PERSONS UNDER THE AGE OF  TWENTY-ONE
 OR  OTHER  VULNERABLE CLASSES OF PERSONS, WHICH THE ATTORNEY GENERAL MAY
 DESIGNATE BY REGULATION.
   5. A PROVIDER SHALL NOT ADVERTISE IN A MANNER THAT  IS  CALCULATED  TO
 REACH  INDIVIDUALS  ON  THE  SELF-EXCLUSION LIST OR INDIVIDUALS KNOWN TO
 HAVE ENGAGED IN AT-RISK TRADING.
   6. EVERY ADVERTISEMENT FOR A PREDICTION MARKET PLATFORM SHALL  INCLUDE
 THE  HOPE  NY  HOTLINE. WHERE SUCH ADVERTISEMENT IS A VIDEO, THE MESSAGE
 AND HOTLINE SHALL BE VISIBLE FOR THE ENTIRE DURATION OF THE VIDEO. WHERE
 THE ADVERTISEMENT IS AUDITORY ONLY IN NATURE, THE MESSAGE SHALL BE STAT-
 ED AT THE BEGINNING AND END OF THE ADVERTISEMENT.
   7. NO ADVERTISEMENT MAY SUGGEST THAT THE PREDICTION MARKET PRODUCT  IS
 ENDORSED  BY THE STATE OF NEW YORK OR ANY GOVERNMENT AGENCY, EXCEPT THAT
 IT MAY STATE THAT THE PLATFORM IS WITHIN THE STATE.
   8. A PROVIDER SHALL PROVIDE CONSUMERS WITH A READILY ACCESSIBLE WAY TO
 OPT OUT OF DIRECT MARKETING. UPON A  CONSUMER'S  REQUEST,  THE  PROVIDER
 SHALL CEASE SENDING THEM PROMOTIONAL MATERIAL.
   9.  NO  PROMOTION  MAY  BE  ADVERTISED  AS  "RISK-FREE"  OR OF SIMILAR
 LANGUAGE.
 S. 9414                             5
 
   10. IF THE PROVIDER OFFERS BONUSES, FREE CREDITS, REFERRAL REWARDS, OR
 OTHER PROMOTIONS TO CONSUMERS, THE TERMS AND CONDITIONS OF THESE  OFFERS
 MUST  BE  DESCRIBED  IN PLAIN LANGUAGE AND SHALL BE READILY AVAILABLE TO
 THE CONSUMER PRIOR TO THE CONSUMER ACCEPTING SUCH BONUSES, FREE CREDITS,
 REFERRAL REWARDS, OR OTHER PROMOTIONS.
   11. WHERE A PROVIDER USES AFFILIATE MARKETERS OR THIRD-PARTY PROMOTERS
 TO  PROMOTE  THE  PROVIDER'S PLATFORM, THE PROVIDER SHALL BE RESPONSIBLE
 FOR ENSURING SUCH THIRD PARTIES ALSO COMPLY WITH THE ADVERTISING  STAND-
 ARDS REQUIRED BY THIS SECTION AND ARE LIABLE FOR NON-COMPLIANCE WITH THE
 PROVISIONS OF THIS SECTION.
   12.  THE  ATTORNEY  GENERAL  MAY PROMULGATE ADDITIONAL RULES AND REGU-
 LATIONS PERTAINING TO ADVERTISING BY PREDICTION MARKET PROVIDERS.
   § 1808. RESTRICTIONS ON CREDIT-BASED PRODUCTS AND  GIFT  CERTIFICATES.
 1.    NO  PREDICTION  MARKET  PROVIDER OR ANOTHER, WHETHER AFFILIATED OR
 OTHERWISE, SHALL SELL PHYSICAL OR DIGITAL GIFT CERTIFICATES IN  RELATION
 TO THEIR PLATFORM.
   2.  NO  PREDICTION  MARKET  PROVIDER  SHALL PERMIT A CONSUMER TO USE A
 CREDIT CARD OR OTHER CREDIT-BASED PRODUCT TO ADD FUNDS TO  SUCH  CONSUM-
 ER'S ACCOUNT OR, IN ANY WAY, WAGER ON A PREDICTION MARKET.
   § 1809. RESTRICTIONS ON MARKET MAKING. 1. A PREDICTION MARKET PROVIDER
 SHALL NOT OFFER A PREDICTION MARKET IN THE STATE IF THE MARKET INCLUDES,
 AS  A LIQUIDITY PROVIDER OR MARKET MAKER, ANY PERSON OR ENTITY WHO KNOW-
 INGLY ENGAGES IN GAMING ACTIVITIES IN THE ORDINARY COURSE  OF  BUSINESS,
 WHETHER  WITHIN  OR OUTSIDE THE STATE. THIS PROHIBITION SHALL ALSO APPLY
 TO  ANY  AFFILIATED  ENTITIES,  SUBSIDIARIES,  PARENT  COMPANIES,  JOINT
 VENTURES,  PARTNERSHIPS,  AGENTS, EMPLOYEES, OR ANY ENTITY ACTING AT THE
 DIRECTION OF, IN COOPERATION WITH, OR FOR THE FINANCIAL BENEFIT OF  SUCH
 A PERSON OR ENTITY.
   2.  A  PREDICTION MARKET PROVIDER SHALL NOT OFFER MARKETS TO RESIDENTS
 WHERE IN SUCH MARKETS THERE IS A CONTRACT OR SHARE  OF  REVENUE  WITH  A
 PERSON OR ENTITY WHO KNOWINGLY ENGAGES IN GAMING ACTIVITIES IN THE ORDI-
 NARY  COURSE  OF  BUSINESS,  WHETHER  WITHIN  OR OUTSIDE THE STATE. THIS
 PROHIBITION SHALL ALSO APPLY TO ANY AFFILIATED  ENTITIES,  SUBSIDIARIES,
 PARENT  COMPANIES,  JOINT  VENTURES, PARTNERSHIPS, AGENTS, EMPLOYEES, OR
 ANY ENTITY ACTING AT THE DIRECTION OF, IN COOPERATION WITH, OR  FOR  THE
 FINANCIAL BENEFIT OF SUCH A PERSON OR ENTITY.
   §  1810.  CERTAIN  CONTRACT  PROVISIONS VOID. 1. A PROVIDER'S TERMS OF
 SERVICE SHALL NOT ALTER OR ELIMINATE ANY RIGHT PROVIDED  TO  A  CONSUMER
 UNDER THIS ARTICLE.
   2.  ANY  AGREEMENT  WHICH  VIOLATES  ANY PROVISION WITHIN THIS ARTICLE
 SHALL BE DEEMED VOID.
   § 1811. INSIDER TRADING  AND  MARKET  MANIPULATION.  1.  A  PREDICTION
 MARKET  PLATFORM  PROVIDER  SHALL  IMPLEMENT COMMERCIALLY REASONABLE AND
 TECHNICALLY FEASIBLE MEASURES TO DETECT AND PREVENT  ANY  FRAUDULENT  OR
 MANIPULATIVE  CONDUCT BY PARTICIPANTS OR OTHERS. IF THE PROVIDER DETECTS
 POTENTIAL MANIPULATION, INSIDER TRADING, OR FRAUD, IT SHALL REPORT IT TO
 THE ATTORNEY GENERAL AND, IF APPROPRIATE, TO LAW ENFORCEMENT.
   2. A PERSON WHO ENGAGES IN INSIDER TRADING OR MARKET MANIPULATION  MAY
 BE SUBJECT TO PENALTIES AS PRESCRIBED BY SECTION THREE HUNDRED FIFTY-TWO
 OF THIS CHAPTER.
   §  1812. PENALTIES. 1. ANY PREDICTION MARKET PROVIDER WHO VIOLATES ANY
 PROVISION OF THIS ARTICLE, OR ANY RULE, REGULATION, OR ORDER PROMULGATED
 THEREUNDER, SHALL BE LIABLE FOR A CIVIL PENALTY NOT TO EXCEED TEN  THOU-
 SAND  DOLLARS  FOR EACH VIOLATION. WHERE THE ATTORNEY GENERAL DETERMINES
 THAT THE PROVIDER HAS ENGAGED IN  A  PERSISTENT  COURSE  OF  CONDUCT  IN
 S. 9414                             6
 
 VIOLATION  OF  THIS  SECTION,  THE  ATTORNEY  GENERAL MAY IMPOSE A CIVIL
 PENALTY NOT TO EXCEED FIFTY THOUSAND DOLLARS FOR EACH VIOLATION.
   2.  WHERE  A  PREDICTION  MARKET  PROVIDER  VIOLATED THE PROVISIONS OF
 SECTIONS EIGHTEEN-HUNDRED THREE OR EIGHTEEN-HUNDRED NINE OF  THIS  ARTI-
 CLE,  SUCH  CIVIL PENALTY SHALL BE THE GREATER OF TWO TIMES SUCH PROFITS
 DERIVED FROM SUCH MARKET OR FIFTY THOUSAND DOLLARS.
   3. WHENEVER THE ATTORNEY GENERAL SHALL BELIEVE FROM EVIDENCE SATISFAC-
 TORY TO THEM THAT A PREDICTION MARKET PROVIDER HAS ENGAGED IN A PERSIST-
 ENT COURSE OF CONDUCT IN VIOLATION OF THIS ARTICLE, THEY  MAY  BRING  AN
 ACTION IN THE NAME AND ON BEHALF OF THE PEOPLE OF THE STATE OF NEW YORK,
 IN  A  COURT  OF  JUSTICE HAVING JURISDICTION TO ISSUE AN INJUNCTION, TO
 ENJOIN AND RESTRAIN THE CONTINUATION OF SUCH VIOLATION. IN SUCH  ACTION,
 PRELIMINARY RELIEF MAY BE GRANTED UNDER ARTICLE SIXTY-THREE OF THE CIVIL
 PRACTICE  LAW  AND  RULES.  IN  SUCH  ACTION  THE COURT SHALL ORDER SUCH
 PROVIDER TO CEASE OPERATIONS IN THE STATE.
   4. WHERE A PREDICTION MARKET PROVIDER  CONTINUES  TO  OPERATE  IN  THE
 STATE  AFTER  AN  ORDER PURSUANT TO SUBDIVISION THREE OF THIS SECTION IS
 MADE, SUCH PROVIDER SHALL INCUR A CIVIL PENALTY OF ONE  MILLION  DOLLARS
 PER DAY THAT SUCH PROVIDER IS OPERATING IN VIOLATION OF SUCH ORDER.
   5.  NOTHING  IN  THIS  ARTICLE SHALL BE CONSTRUED TO PRECLUDE CRIMINAL
 PROSECUTION UNDER ANY OTHER LAW.
   6. THE FACT THAT A PREDICTION MARKET PROVIDER DID NOT CHARGE MONEY  OR
 EARN  PROFIT FROM SUCH ACTIVITIES IN VIOLATION OF THIS SECTION SHALL NOT
 BE A DEFENSE TO A VIOLATION OF THIS ARTICLE.
   7. NOTHING IN THIS ARTICLE SHALL BE CONSTRUED AS LIMITING THE  COMMIS-
 SIONER  OF  THE NEW YORK STATE GAMING COMMISSION OR THE ATTORNEY GENERAL
 FROM PENALIZING PREDICTION PLATFORMS FOR VIOLATING  ANY  LAW  UNDER  THE
 JURISDICTION  OF  EACH. THE COMMISSIONER OF GAMING SHALL HAVE CONCURRENT
 JURISDICTION WITH RESPECT TO ANY VIOLATION OF SECTION NINE HUNDRED THIR-
 TEEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW.
   8. THE REMEDIES AND PENALTIES IN THIS ARTICLE ARE CUMULATIVE.  IMPOSI-
 TION  OF  A  PENALTY  UNDER  THIS SECTION DOES NOT PRECLUDE THE ATTORNEY
 GENERAL FROM TAKING ANY OTHER ACTION AUTHORIZED FOR THE SAME VIOLATION.
   § 1813. RULEMAKING AUTHORITY. THE ATTORNEY  GENERAL  SHALL  PROMULGATE
 RULES  AND  REGULATIONS  AS  ARE NECESSARY TO EFFECTUATE AND ENFORCE THE
 PROVISIONS OF THIS ARTICLE.
   § 2. The racing, pari-mutuel wagering and breeding law is  amended  by
 adding a new section 913 to read as follows:
   §  913. PROHIBITION OF LICENSED ENTITIES ENGAGING IN PREDICTION MARKET
 ACTIVITY. 1. FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:
   (A) "PREDICTION MARKET" MEANS A SYSTEM THAT ALLOWS CONSUMERS TO OPEN A
 SPECULATIVE POSITION ON THE OUTCOME  OF  FUTURE  EVENTS,  IN  A  BID-ASK
 FORMAT.  THIS  DEFINITION  SHALL INCLUDE ALL FORMS OF PREDICTION MARKETS
 REGARDLESS OF THE MECHANISMS OR STRUCTURES USED FOR OPENING  SPECULATIVE
 POSITIONS ON FUTURE EVENTS.
   (B)  "BID-ASK  FORMAT"  SHALL  MEAN  A  FORMAT IN WHICH PARTIES SUBMIT
 OFFERS TO BUY POSITIONS ON A PREDICTION MARKET AT A  SPECIFIC  PRICE  OR
 RANGE  OF  PRICES  AND  OFFERS  TO SELL POSITIONS AT A SPECIFIC PRICE OR
 RANGE OF PRICES, WITH MARKET PRICES DETERMINED THROUGH THE  MATCHING  OF
 THESE OFFERS.
   (C)  "SPECULATIVE  POSITION"  MEANS  A  FINANCIAL COMMITMENT MADE BY A
 PARTICIPANT IN A PREDICTION MARKET.
   2. NO ENTITY THAT (A) IS LICENSED IN THIS STATE, (B)  WOULD  OTHERWISE
 BE REQUIRED TO BE LICENSED TO OPERATE IN THIS STATE, OR (C) IS PROHIBIT-
 S. 9414                             7
 
 ED  FROM  OPERATING IN THIS STATE UNDER THIS CHAPTER SHALL OFFER PREDIC-
 TION MARKETS TO CONSUMERS IN THIS STATE.
   3.  (A) ANY APPLICANT, LICENSED ENTITY, GAMING EMPLOYEE, KEY EMPLOYEE,
 INDIVIDUAL INVESTOR OR INVESTMENT  FIRM,  BOARD  MEMBER,  OR  ANY  OTHER
 PERSON  OR ENTITY FOUND IN VIOLATION OF THIS SECTION SHALL BE SUBJECT TO
 A FINE OF NOT LESS THAN TEN THOUSAND  DOLLARS  AND  NOT  MORE  THAN  ONE
 HUNDRED  THOUSAND DOLLARS FOR EACH VIOLATION AND SHALL BE SUBJECT TO THE
 LOSS OF A GAMING LICENSE AND/OR BE INELIGIBLE FOR A GAMING LICENSE.
   (B) ALL FINES RESULTING FROM  VIOLATIONS  OF  THIS  SECTION  SHALL  BE
 COLLECTED  BY THE STATE GAMING COMMISSION AND DEPOSITED INTO THE COMMER-
 CIAL GAMING REVENUE FUND, ESTABLISHED IN  SECTION  NINETY-SEVEN-NNNN  OF
 THE  STATE FINANCE LAW, TO BE DISTRIBUTED FOR PROBLEM GAMBLING EDUCATION
 AND TREATMENT PURPOSES PURSUANT TO PARAGRAPH A OF  SUBDIVISION  FOUR  OF
 SUCH SECTION.
   4.  (A) THE STATE GAMING COMMISSION, THE STATE POLICE, OR THE ATTORNEY
 GENERAL'S OFFICE SHALL HAVE THE AUTHORITY TO ENFORCE THE  PROVISIONS  OF
 THIS SECTION.
   (B)  THE  STATE  GAMING COMMISSION, STATE POLICE OR ATTORNEY GENERAL'S
 OFFICE MAY CONDUCT INVESTIGATIONS, HOLD HEARINGS, ISSUE CEASE AND DESIST
 LETTERS, AND ISSUE SUBPOENAS TO ENSURE COMPLIANCE WITH THE PROVISIONS OF
 THIS SECTION, PROVIDED HOWEVER THAT THE ATTORNEY GENERAL MAY  ENGAGE  IN
 SUCH  ACTIVITY  ONLY WITH RESPECT TO ANY CONCURRENT VIOLATION OF ARTICLE
 FORTY-EIGHT OF THE GENERAL BUSINESS LAW.
   § 3. Severability. If any clause,  sentence,  paragraph,  section,  or
 part  of this article shall be adjudged by any court of competent juris-
 diction to be invalid. Such judgment shall not affect, impair, or inval-
 idate the remainder thereof, but shall be confined in its  operation  to
 the  clause,  sentence, paragraph, subdivision, section, or part thereof
 directly involved in the controversy in which  such  judgment  has  been
 rendered. It is hereby declared to be the intent of the legislature that
 this act would have been enacted if such invalid provisions had not been
 included therein.
   §  4. This act shall take effect one year after it shall have become a
 law.

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Senate Bill S9414

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Current Bill Status - In Senate Committee Racing, Gaming And Wagering Committee

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2025-S9414 (ACTIVE) - Details

2025-S9414 (ACTIVE) - Summary

2025-S9414 (ACTIVE) - Sponsor Memo

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Sponsored By

Joseph P. Addabbo Jr.

Current Bill Status - In Senate Committee Racing, Gaming And Wagering Committee

Actions

2025-S9414 (ACTIVE) - Details

2025-S9414 (ACTIVE) - Summary

2025-S9414 (ACTIVE) - Sponsor Memo

2025-S9414 (ACTIVE) - Bill Text download pdf

Comments