New York Targets Prediction Markets with New Bill

New York Assemblyman Clyde Vanel wants to put tighter limits on prediction markets, and he’s introduced Assembly Bill 9251 aimed at doing just that.

“These Platforms Have to Abide By the Same Regulations”

CNY Central reports that the proposal, called the Oversight and Regulation of Activity for Contracts Linked to Events Act (ORACLE), would block certain types of prediction contracts that lawmakers believe fall outside the bounds of acceptable public policy. 

Platforms such as Kalshi and Polymarket have grown quickly in the past few years, even as many in the gambling industry argue that these companies are taking advantage of a gray area in state law.

That growth has been especially visible during major political moments. Billions of dollars were reportedly wagered on prediction markets during the recent New York City mayoral race, raising concerns among regulators who say these products look and function a lot like traditional betting.

Some states are already trying to push back. Massachusetts has sued Kalshi, and now New York is considering its own approach. 

Explaining the goals of his bill, Vanel said, “What this legislation does is, number one, it prevents certain types of events from being used on this platform. Number two, for event contracts that touch regulated betting activities in New York. These platforms have to abide by the same regulations and safeguards that the other betting platforms have to do in New York State.”

What the Bill Proposes

The bill would block New Yorkers from taking part in prediction markets tied to “catastrophic events, politics, deaths, securities, and athletic events.” The text of the bill also makes a clear distinction for sports, with betting on a single game becoming off-limits, and markets tied to an entire tournament allowed to stay.

The ORACLE Act would also add several consumer rules for platforms operating in the state. Users would need to be at least 21, have access to self-exclusion tools, and see clear HOPE NY hotline information. 

Platforms would also have to explain how outcomes are decided and avoid using private or undisclosed data to settle markets.

Advertising would face new limits too, with promotions banned from targeting individuals under 21, using terms like “risk-free,” or relying on push notifications to pitch unrelated deals. Credit card deposits and gift cards linked to prediction markets would be banned as well.

The timing means nothing will happen immediately. New York’s 2025 legislative session has already wrapped, so lawmakers won’t be able to take up the bill until the new session begins on January 7, 2026.