New Jersey, Vermont Push New Bills on Prediction Markets as unlawful wagering and bans

The measures would block certain event-based contracts and strengthen oversight of sports betting. In New Jersey, Senate Bill 3692 was filed on February 24. Sponsored by Senators Shirley K. Turner and John F. McKeon, the proposal would ban specific types of prediction markets and set compliance standards for platforms in the state.

The bill makes clear that New Jersey will not interfere with markets already covered under the federal Commodity Exchange Act. But for platforms active in the state, compliance with local rules is required where no direct conflict exists. 

The legislation specifically bars markets tied to political elections, catastrophic events such as wars or natural disasters, and outcomes involving death, including assassination or mass casualty incidents.

$1 million per day fine proposed for violators 

Under the new proposal, the Attorney General would have the power to seek court injunctions against operators that break the rules. If those operators continue running after an injunction is issued, they could face civil penalties of $1 million for every day they remain active.

The bill does allow athletic event markets, but only if the operator already holds a sports wagering licence or partners with a licensed entity. Oversight would fall to the Division of Gaming Enforcement, which would apply regulations similar to those used for online sports betting.

Operators would need to verify that all participants are at least 21 years old, adopt responsible gaming tools such as self-exclusion and deposit limits, and include problem gambling helpline details in their advertising.

Revenue from athletic event markets would be taxed at the same rate as internet sports wagering and directed into the State General Fund.

The Division of Gaming Enforcement is also tasked with creating a public awareness campaign. This would explain the legal status of prediction markets, outline the risks involved, and provide information on how to report suspicious activity or access gambling support services.

Vermont looking to tag prediction markets as unlawful wagering 

Meanwhile, in Vermont, a new proposal seeks to prediction markets part of the state’s definition of unlawful wagering. 

House Bill 913, read for the first time on February 25 and sent to the Committee on Government Operations and Military Affairs, would expand criminal statutes to cover contracts tied to outcomes such as sports, contests, political campaigns, disasters, war, all‑hazards events, or death.

The measure also moves into contract law, declaring that agreements based on these markets would be void and giving individuals the right to recover money lost through them.

Alongside these restrictions, the bill introduces a $0.50 fee on every wager placed with licensed sports betting operators, adding a new revenue stream while tightening the rules around gambling activity in the state.

https://www.igamingtoday.com/new-jersey-vermont-push-new-bills-on-prediction-markets/