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Sets federal rules for online prediction markets: it bars certain event-based contracts, forbids manipulative and deceptive conduct, requires operators to verify users and bar anyone under 21, and creates a federal national self-exclusion list. States must apply for a federally approved wagering program and meet minimum consumer‑protection, licensing, recordkeeping, and enforcement standards before online prediction market operators may legally offer services in that State.
The bill significantly strengthens consumer protections, integrity, and federal enforcement of online prediction markets—especially for youth and vulnerable users—but does so by imposing substantial compliance, privacy, and access costs that may limit market competition, innovation, and certain uses
All Americans (victims and the public) gain stronger federal enforcement powers: the Attorney General and DOJ can seek court orders, impose civil penalties, and coordinate with states to stop unlawful online prediction-market activity.
Young people and vulnerable adults gain public‑health protections: the bill requires age verification (21+), marketing limits, and links to treatment resources while creating state and a national self‑exclusion system to reduce underage and problem gambling.
Online bettors and operators benefit from clearer rules and definitions: standardized definitions (e.g., 'wager', 'suspicious transaction', 'microbet') and reporting standards improve legal clarity, cross‑jurisdiction coordination, and predictable compliance expectations.
Consumers and sports/event participants gain fairness and integrity protections: the bill bars insider manipulation, requires transparent listing resolution and prompt removal of violative listings, and covers sports organizations to protect event integrity.
Small operators, startups, and consumers will face higher costs: extensive compliance requirements (identity verification, reporting, reserve/backstop standards) and licensing can raise operating costs, reduce competition, and increase prices or reduced offerings for users.
Residents in non‑opt‑in states and cross‑jurisdiction users will lose or have restricted access: the federal/state approval framework and potential state bans create a patchwork that can block access in many places and complicate interstate use.
Bettors and account holders will face increased privacy and data‑security risks because platforms must collect and retain detailed personal identifiers (SSN/passport), IP/location, timestamps, and suspicious‑transaction records that could be re‑identified or breached.
Operators and individuals risk severe legal penalties: the bill authorizes large civil fines and criminal exposure (minimum fines and up to two years imprisonment per violation), which can be disproportionately burdensome for small actors and raise criminalization concerns.
Authorizes the Attorney General to bring a civil action for injunctive relief in a U.S. district court against any person who violates this Act or regulations under this Act.
Establishes criminal penalties of a fine of not less than $50,000 per violation, imprisonment for up to 2 years, or both, for any person who violates this Act or regulations under this Act.
Clarifies that nothing in this section limits the Attorney General’s authority under other law.
Authorizes State attorneys general to bring parens patriae civil actions in U.S. district court on behalf of State residents to enjoin violations of this Act or its regulations by operators of online prediction markets.
Requires a State attorney general to notify the Attorney General in writing at least 10 days before filing a parens patriae civil action, and to include a copy of the complaint.
Who is affected and how:
State governments: Directly affected because they must create or adapt wagering regulatory programs that meet federal minimums, complete applications to the Attorney General, conduct licensing and oversight, and implement consumer protections. States that decline to implement approved programs effectively block lawful online prediction market operators from offering services within their borders, and States may still choose stricter rules or bans.
Young adults (under 21): Barred entirely from registering, wagering, or being the focus of advertising for online prediction markets; platforms must verify age and prevent underage access, which will reduce youth exposure but may restrict some 18–20‑year‑old adults who could previously access such services.
Tech companies / platform operators and tech workers: Must implement compliance programs, identity and age verification systems, advertising controls, transaction monitoring, recordkeeping, and reporting; foreign platforms targeting U.S. users will face operational limits unless they comply with State programs and federal rules.
Law enforcement and regulators: Gain expanded federal and State enforcement tools, data access, and cooperation mechanisms to investigate fraud, manipulation, and illegal operations; the Attorney General has review and intervention authority over State enforcement actions.
Consumers and people at risk of problem gambling: Receive new protections (self‑exclusion, advertising limits, age verification, deposit rules, licensing transparency) that aim to reduce fraud, underage access, and addiction risks; availability of markets may decline in States that do not adopt approved programs.
Financial institutions and payment processors: May face new compliance checks and obligations when facilitating transfers related to wagering, and will need screening against self‑exclusion and sanctions lists.
Potential effects and tradeoffs:
Public‑health and consumer‑protection benefits are likely where State programs are implemented and enforced, but implementation costs and administration burdens will fall to States and regulated platforms.
The requirement that States obtain AG approval to permit markets may limit market access in some States, potentially pushing consumers to unregulated or offshore providers unless enforcement against foreign operators is effective.
The national self‑exclusion tool centralizes an opt‑out mechanism but requires effective cross‑State data sharing and operational rules to work as intended.
Inserts a new subsection (d) to prohibit online prediction markets from listing, clearing, or trading agreements, contracts, transactions, or swaps in an excluded commodity that are based on an occurrence, extent of an occurrence, or contingency.
Adds a new section 554 to Part D of title V of the Public Health Service Act establishing a national self-exclusion list and related definitions for online prediction market wagering.
This section requires operators’ rules to prohibit transactions that would constitute a prohibited transaction described in 7 U.S.C. 6c and references that provision in subsection (e)(1)(B).
Section 3 defines 'reasonable lender standard' by referencing the definition of 'insured depository institution' in 12 U.S.C. 1813 (Federal Deposit Insurance Act) for the underwriting criteria context.
Section 3 uses the existing definitions of 'Indian lands' and 'Indian Tribe' as defined in 25 U.S.C. 2703 by incorporating those meanings into this Act's definitions.
Read twice and referred to the Committee on the Judiciary.
Introduced March 11, 2026 by Richard Blumenthal · Last progress March 11, 2026
Expand sections to see detailed analysis
Read twice and referred to the Committee on the Judiciary.
Introduced in Senate