Pennsylvania prediction markets bill could block sportsbooks from market making

Pennsylvania lawmakers have introduced a bipartisan bill that has proposed insider-trading rules for prediction markets while preventing sportsbooks and other gambling companies from supplying liquidity or acting as market makers for those platforms. Summary Pennsylvania lawmakers have introduced a bipartisan bill that would bar gambling companies from acting as liquidity providers or market makers for prediction markets. The proposal would also add insider trading rules, consumer protections, and age restrictions without creating a state licensing system. A separate Pennsylvania bill would require prediction market operators to obtain state licenses and pay a 22% tax on revenue. The legislation comes as sportsbooks expand into prediction market infrastructure and legal disputes over federal and state authority continue. Neither prediction market bill has received a committee hearing or vote in the Pennsylvania House. The proposal, House Bill 2711, was introduced on July 22 by Democratic Rep. Tarik Khan and referred to the House Consumer Protection, Technology and Utilities Committee. Backed by 24 lawmakers, including 20 Democrats and four Republicans, the measure would regulate pr...