Bill > A4689

Introduced Session

This bill prohibits the operation of certain prediction markets in this State and authorizes the operation of athletic event markets operating in compliance with sports wagering regulations. Prediction markets offer participants the ability to purchase "events contracts" which pay out if the participant has predicted the correct outcome of the event. In effect, prediction markets enable people to wager on everything from sports to elections to world events, all while avoiding State regulations because they are packaged and sold as federally regulated securities. The bill, in recognition of the overarching federal framework, creates three distinct areas of State regulation: 1) that which is governed explicitly by the Commodity Exchange Act and federal law, which the State will not interfere with; 2) that which is contrary to longstanding public policy and should be prohibited outright; and 3) that which has traditionally been regulated by the State and may be allowed in conformity with applicable State regulations. As the case law related to the Commodity Exchange Act evolves, the limitations applicable to State regulation may change; however, this bill directly acknowledges the federal framework, establishes basic standards for the operation of prediction markets that the State can and should implement to protect its citizens, and empowers State regulators with the tools and authority necessary to respond if and when the applicable federal limitations change. The bill requires all prediction markets to meet basic standards, including that the prediction markets disclose the source of information used to settle a market and take practical steps to limit potential manipulation, insider trading, or fraud in violation of State law. This bill also prohibits prediction markets that allow participants to effectively wager on death markets, catastrophic event markets, and political markets. The bill authorizes the State Attorney General to petition the court for an injunction to stop any operation of a prediction market that violates these basic requirements. Operators who refuse to comply with an injunction issued pursuant to this bill will be fined $1 million per day that the operation continues. The bill also regulates athletic event markets in the same manner as sports wagering. This includes requiring any operator of an athletic event market to either obtain a sports wagering license, or become licensed as a casino service industry enterprise and partner with a sports wagering licensee. Athletic event markets will also require a minimum age of 21 years to participate, establish self-exclusion and responsible gaming programs, and pay taxes at an equivalent rate to online sports pools. The Division of Gaming Enforcement will be tasked with the oversight of athletic event markets. Any person who operates an athletic event market without approval of the division will be guilty of a crime of the fourth degree will be subject to a fine of not more than $25,000 and, in the case of a person other than a natural person, to a fine of not more than $100,000. The bill requires the Division of Gaming Enforcement to establish a public awareness campaign to inform citizens of this State about the various types of prediction markets which may be operating in the State, the risks of opening a speculative position on a prediction market, contact information for reporting suspicious activity to regulators, and resources for problem gamblers. As defined in the bill: "Prediction market" means a system that allows participants to open a speculative position on the outcome of future events, in a bid-ask format. "Athletic event market" means a prediction market that enables a participant to open a speculative position on the outcome of a sports event or horse racing. "Catastrophic event market" means a prediction market that enables a participant to open a speculative position on an outcome that relates to war, state or national emergencies, natural or human-made disasters, mass shootings, acts of terrorism, or public health crises or the ancillary effects thereof. "Death market" means a prediction market that enables a participant to open a speculative position on the death, assassination, or attempted killing of a person or group of persons, or on mass casualty events. "Political market" means a prediction market that enables a participant to open a speculative position that relates to an election for federal office in which voters in New Jersey will participate, an election for any State office in New Jersey, including elections for Governor and members of the State Legislature, or an election for a county or municipal office, or school board or fire district, within the State.

AI Summary

Committee Categories

Bill Moen (D)*,  Balvir Singh (D)*,  Carmen Morales (D), 

Introduced, Referred to Assembly Tourism, Gaming and the Arts Committee (on 03/16/2026)

Official Document