Pennsylvania HB 2711 Seeks to Regulate Prediction Markets Instead of Imposing Bans
TL;DR — Rep. Tarik Khan introduced House Bill 2711 on July 22 with more than 20 co-sponsors. Pennsylvania is taking a different tack from most states by attempting to create a regulatory framework for prediction markets rather than banning them outright. Doug Mishkin said prediction markets would be less likely to push back but it is still looking to regulate them and limit them in certain ways.
SCCG Take — This approach indicates high-demand activities like prediction markets will likely end in regulation over bans in Pennsylvania. Operators gain a clearer compliance path that incorporates consumer protections drawn from sportsbook standards.
Pennsylvania is pursuing a regulatory framework for prediction markets rather than banning them, setting it apart from several other states. Rep. Tarik Khan introduced House Bill 2711 on July 22 with more than 20 co-sponsors. Attorney Doug Mishkin, a partner in BCLP‘s Sports, Entertainment & Media practice, outlined in an interview with Casino Beats how this legislation could follow the path of daily fantasy sports and online sports betting, which moved from legal uncertainty to licensed operations.
Mishkin observed that the bill sets itself up for potential litigation because prediction markets maintain they fall under exclusive federal jurisdiction. “Prediction markets are and have taken the position that they are not subject to state law because they’re subject to the exclusive jurisdiction of federal law.” Yet because the measure stops short of outright bans or penalties, he said prediction markets would be less likely to push back even as it imposes regulations and limits.
The history of daily fantasy sports and sports betting in the state provides a template. Both activities generated widespread customer interest and rapid growth before facing attorney general challenges that labeled them illegal gambling. Prolonged litigation gave way to settlements that produced licensing and regulation. “I think it is indicative of where we end up ultimately,” Mishkin said. He added that the insatiable demand for risking money on sports-related predictions makes an outright ban an unlikely final result.
Key Provisions of HB 2711
The legislation contains several specific requirements. Users must be 21 years old. It prohibits “death markets” or any markets involving an individual’s health. Trading on high school sports or competitions involving minors is barred. Operators must prevent trading on material nonpublic information and implement consumer protection measures that include self-exclusion.
Mishkin endorsed the focus on responsible gambling. “I’m a proponent of, at least as it relates to sportsbook regulations, that there is some attempt to address problem gambling behaviors.” He stated that prediction markets need to ensure they are not serving self-excluded individuals, noting there is no distinction between sportsbooks and prediction markets when it comes to susceptibility to addiction.
Pennsylvania’s Regulatory Trajectory
The bill’s design reflects the pattern that resolved earlier uncertainties around daily fantasy sports and sports betting through structured oversight instead of prohibition. Demand indicators suggest this approach aligns with where the market is headed. Operators and regulators will need to track how these provisions translate into licensing standards that balance access with consumer safeguards as the legislative process moves forward.
Reporting: Casino Beats
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
Pennsylvania's HB 2711 follows the DFS and sports betting playbook: regulate high-demand activity instead of fighting inevitable litigation.
We've lived this cycle twice in Pennsylvania — DFS, then sports betting. Both went from 'illegal' to licensed after demand overwhelmed enforcement. HB 2711 skips the ban-and-litigate phase and goes straight to framework. Smarter for operators, clearer for compliance, and it signals prediction markets are here to stay.
- Rep. Tarik Khan's HB 2711 proposes 21+ licensing, bans on death/minor markets, self-exclusion requirements
- Bill avoids outright ban, reducing likelihood of federal preemption litigation from prediction market operators
- Mirrors Pennsylvania's DFS and sports betting path from legal limbo to regulated, licensed operations
SCCG angle: SCCG has the regulatory and government affairs network in Pennsylvania from two licensing cycles. We connect prediction market operators to the compliance architects, lobbyists, and platform partners who know how PA actually moves from bill to live market — because we helped them do it for sports betting and DFS.
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