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Pennsylvania HB 2711 Proposes State Regulation of Prediction Market Platforms, United States, 22 July 2026

On 22 July 2026, Representative Tarik Khan introduced Pennsylvania HB 2711 with 24 co-sponsors, proposing a state regulatory regime for prediction market platform operators. The bipartisan bill sets the minimum participation age at 21, restricts trading by persons holding material nonpublic information, and grants the Pennsylvania Attorney General enforcement authority including fines of up to $10,000 per violation and the power to ban non-compliant platforms.

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Pennsylvania Representative Tarik Khan introduced House Bill 2711 on 22 July 2026 with 24 co-sponsors drawn from both parties. The bill proposes a state regulatory regime for prediction market platform operators and has been referred to the Consumer Protection, Technology, and Utilities Committee. No committee vote has been scheduled.

HB 2711 sets the minimum participation age at 21 and prohibits platforms from permitting self-excluded users, employees, and persons holding material nonpublic information from placing positions. The Pennsylvania Attorney General receives authority to enforce the requirements, issue fines of up to $10,000 per violation, and impose penalties of up to $50,000 for persistent breaches of market-making, participation exclusion, and nonpublic-information trading provisions. The Attorney General may also ban non-compliant platforms from operating in the state.

Prediction market platform operators serving Pennsylvania users or seeking licensed operations in the state would be directly regulated under HB 2711 if enacted. The bill's consumer protection requirements, particularly the nonpublic information restrictions, mirror standards applied in securities and commodities markets at the federal level. The bill does not address how platforms already registered with the Commodity Futures Trading Commission as designated contract markets would interact with the proposed state regime.

Pennsylvania is among several U.S. states that have considered prediction market legislation in 2026. The CFTC has approved prediction contracts on certain registered exchanges at the federal level, and the boundary between state and federal authority over platforms not operating as CFTC-designated contract markets has not been definitively resolved. HB 2711 may face constitutional questions about federal preemption if it purports to license or restrict platforms already subject to CFTC oversight.

Licentium advises on prediction market platform licensing, regulatory strategy, and compliance in U.S. and international jurisdictions, and can refer matters to specialist counsel where applicable. Work we undertake includes prediction market regulatory analysis, CFTC compliance review, state licensing assessment, and consumer protection structuring for platform operators.

Source: Pennsylvania General Assembly, HB 2711, introduced 22 July 2026 by Representative Tarik Khan

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