New York seeks ways to regulate forecast contracts: a new bill proposes restrictions on political and sports betting

ImpermanentTherapist · 2026-01-19T13:28:16+00:00

New York legislators have introduced the "ORACLE Act" to regulate prediction markets, establishing rules for event-driven contracts. The bill aims to limit trading on political and sports outcomes while allowing neutral predictions, balancing risk control and financial innovation.

ImpermanentTherapist

2026-01-19 13:28:16

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New York State lawmakers have introduced a bill to regulate the prediction market. According to PANews on January 9, the bill titled “ORACLE Law” was filed in November 2025 with the aim of establishing a comprehensive regulatory framework for contracts dependent on the occurrence of specific events.

Key Provisions of the Bill

The proposal suggests amendments to the General Commercial Law of the state by adding a new section numbered 48, dedicated to prediction markets. A key feature of this document is the establishment of clear restrictions on trading activities related to contracts tied to political elections and sports outcomes.

Regulatory Structure and Protective Mechanisms

The bill proposes the implementation of a detailed set of rules, including age thresholds for market participants, entry criteria for platforms, and restrictions on marketing activities. Additionally, the document contains anti-manipulation provisions aimed at preventing unfair trading practices.

Balancing Restrictions and Innovation

Interestingly, although the bill bans trading contracts linked to political and sports results, it allows for the trading of so-called neutral outcome types. Examples include general predictions such as “win or lose in the league,” which may remain accessible to participants. This approach demonstrates the regulators’ attempt to strike a balance between risk control and fostering the development of innovative financial instruments in the market.

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