Pennsylvania lawmakers are considering HB 2711, a bill that would put prediction market platforms such as Kalshi and Polymarket under state regulation without banning sports event contracts. Rep. Tarik Khan introduced it with backing from 24 members of the House — 20 Democrats and four Republicans. The bill has gone to the consumer protection committee.
The bill sets a minimum age of 21 and copies safeguards used in sports betting: self-exclusion programmes, manipulation detection by staff with access to non-public information, and notices to the state when insider trading is suspected. Contracts on school sports, contests involving minors, and markets on the health or death of people — including assassinations and terrorist attacks — are banned. Sports events are not on that list.
A separate clause blocks providers that use market makers or liquidity suppliers active in gambling. That would keep DraftKings and FanDuel, both licensed as bookmakers in Pennsylvania, from launching prediction platforms in the state.
Penalties run to $10,000 for a violation and $50,000 for systematic breaches or those tied to market making and insider trading. Individual liability can exceed $50,000 or equal twice the profit taken. An operator that ignores a court injunction pays $1 million a day.
Pennsylvania's approach differs from other states. North Carolina imposed a 6% tax but allowed sports contracts without a licence. Illinois also approved a tax through its budget. The Commodity Futures Trading Commission is suing Illinois and several other states, arguing prediction markets belong under federal jurisdiction.
