Blumenthal Introduces New Legislation to Regulate Prediction Markets

The Prediction Markets Security and Integrity Act bans wagers on war, cracks down on insider trading, and protects consumers from fraud
[WASHINGTON, DC] – Today, U.S. Senator Richard Blumenthal (D-CT) introduced new legislation to prevent abuse and fraud in prediction markets. Prediction markets have grown into a multi-billion-dollar unregulated industry, ignoring state gambling laws while operating businesses identical to traditional sportsbooks by letting people bet on real-world events.
In the absence of federal or state safeguards, prediction markets have harbored insider trading, market manipulation, underage gambling, and leaks of national security information. ThePrediction Markets Security and Integrity Actaddresses these issues by establishing federal consumer protections and returning regulatory authority to the states. ThePrediction Markets Security and Integrity Actis cosponsored byU.S. Senator Andy Kim (D-NJ).
“Prediction markets have become a haven for insider trading, market manipulation, and underage gambling. These billion-dollar businesses are turning war into a casino game, and creating a market for national security leaks,”said Blumenthal.“My measure—the Prediction Markets Security and Integrity Act—puts guardrails on this out-of-control industry. It bans dangerous and unethical bets and protects consumers from fraud and other predatory practices.”
“Corruption and exploitation are thriving right now within the gaps and loopholes of prediction markets. This manipulation leaves the select few winning big, at the expense of working Americans. By instating basic guardrails and safeguards through this legislation, we can better protect consumers and safeguard against real threats to our national security coming out of this unregulated industry,”said Kim.
Specifically, the bill:
Blumenthal previously introduced legislation to create nationwide consumer protections and standards for the mobile sports gambling industry. Last year, Blumenthal reintroduced theSupporting Affordability and Fairness with Every Bet (SAFE Bet) Actalongside U.S. Representative Paul D. Tonko (D-NY). TheSAFE Bet Actrequires states offering sports betting to meet minimum federal standards in the categories of marketing, affordability and Artificial Intelligence to create a safer, less addictive product. Blumenthal also reintroduced theGambling addiction Recovery, Investment, and Treatment (GRIT) Act, with U.S. Representative Andrea Salinas (D-OR). TheGRIT Actdedicates federal funds to studying, preventing, and treating gambling addiction in America.
The full text of thePrediction Markets Security and Integrity Actisavailable here. A one-pager isavailable here.
-30-