Share 
Rep. Danilo Burgos has officially introduced legislation that would regulate prediction markets under the oversight of the Pennsylvania Gaming Control Board, as lawmakers continue pushing back against federally regulated event contract platforms acting as Pennsylvania sportsbooks.
House Bill 2497, introduced Friday and referred to the House Gaming Oversight Committee, would create a new section of Pennsylvania gaming law dedicated to “event outcome prediction wagering.”
The proposal comes roughly two months after Burgos circulated a co-sponsorship memo warning that prediction market operators were functioning similarly to sports operators without complying with Pennsylvania gaming regulations.
The legislation specifically cites the Commodity Futures Trading Commission’s (CFTC) “noninterference approach” toward prediction markets as justification for establishing a state-level regulatory framework.
Bill broadly defines prediction markets
HB 2497 defines event contracts as agreements tied to the occurrence or nonoccurrence of future events involving sports, elections, weather, awards, or other “economic, political or social” events.
The bill also explicitly classifies exchange wagering, parlays, over-under bets, moneylines, pools, and straight bets as forms of “event outcome prediction wagering.”
Under the proposal, companies offering prediction market contracts to Pennsylvania residents would need to obtain a license from the PGCB before operating in the state. Licenses would cost $1 million upfront and require a $1 million annual renewal fee.
While Burgos proposed a 34% tax in the memo, he lowered it to a 20% tax on gross event outcome prediction wagering revenue along with a 2% local share assessment.
Revenue from the local assessment would be distributed through the Commonwealth Financing Authority for public interest projects across Pennsylvania.
Consumer protection measures included
The bill includes several consumer protection requirements similar to Pennsylvania’s broader gaming framework.
Participants would need to be at least 21 years old to use prediction market platforms legally in Pennsylvania.
The legislation also prohibits wagering tied to criminal activity, including money laundering, insider trading, and the use of nonpublic information for financial gain. Another bill, strictly on insider trading, was introduced earlier this week by another lawmaker.
Additionally, the PGCB would receive authority to restrict wagering involving “sensitive economic, political or social events,” including elections, military conflicts, natural disasters, and judicial rulings.
One unique provision requires a three-day cooling-off period, allowing participants to cancel an event contract after signing it. Short-term wagering could not occur until the three-day period expires.
Operators would also need to offer self-exclusion options and provide clear disclosures outlining participant rights, fees, and complaint procedures.
Pennsylvania joins broader fight over prediction markets
The bill arrives as state gaming regulators nationwide continue challenging prediction market operators such as Kalshi, which argue their event contracts fall under federal commodities law rather than state gambling regulation.
Earlier this week, the PGCB submitted comments to the CFTC arguing that sports event contracts function similarly to sports wagering products already regulated at the state level.
Pennsylvania regulators have increasingly warned that prediction market operators are bypassing licensing standards, taxation requirements, and responsible gambling protections imposed on sportsbooks.
HB 2497 would formally bring those platforms under Pennsylvania’s gaming framework if enacted.
