A new proposal in Albany aims to bring emerging “prediction market” platforms under state oversight, as lawmakers move to close what they see as a growing gap in New York’s gambling laws.
The measure, sponsored by state Sen. Joseph Addabbo, would give the state attorney general authority to establish rules and regulations governing prediction market platforms — online services where users wager on outcomes ranging from elections to economic trends.
Unlike traditional sports betting, prediction markets operate by allowing users to trade on the likelihood of an event happening, often framed as financial “markets” rather than direct bets. Lawmakers say that structure has allowed platforms like Kalshi to operate in a gray area under existing law.
Under the proposal, the attorney general — currently Letitia James — would be responsible for creating a regulatory framework that treats prediction markets more like other forms of legalized gambling in the state.
Key elements under discussion include limits on how much users can wager through their accounts, aimed at reducing financial risk and curbing excessive betting behavior. The proposal also calls for safeguards to identify and intervene when users show signs of problem gambling, including outreach or restrictions on account activity.
Lawmakers backing the measure argue that without regulation, prediction markets could continue expanding without consumer protections, particularly as they are designed to resemble financial tools or informational platforms rather than traditional betting services.
The proposal comes as New York joins a bipartisan coalition of states defending existing gambling laws against legal challenges tied to prediction markets, while also pursuing its own framework to regulate them moving forward.
If adopted, the plan would mark a significant expansion of the state’s approach to gambling oversight, extending rules and protections into a rapidly evolving segment of the online betting landscape.
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