- New York lawmakers have revived the ORACLE Act, a proposal that would sharply limit prediction market platforms by prohibiting most sports-related contracts.
- The measure is part of a broader effort to rein in wagering, as lawmakers also consider restrictions on live, in-game betting at state sportsbooks.
- The bill includes strong enforcement provisions, such as substantial fines, age verification requirements, and deposit limits, with a delayed implementation period.
NEW YORK – State lawmakers have reintroduced legislation that could significantly restrict prediction market platforms from offering sports-related contracts to residents. Assemblyman Clyde Vanel brought back the ORACLE Act, or Oversight and Regulation of Activity for Contracts Linked to Events, during the 2026 legislative session that began on Wednesday
The bill, officially known as Assembly Bill 09251, would create stringent restrictions on the kinds of market prediction platforms that can operate and add a new Article 48 to New York’s General Business Law.
Sports betting is the most commercially significant of the five kinds of prohibited markets targeted by the proposed legislation. Prediction market sites would be barred by the ORACLE Act from taking bets on particular sporting events, such as single games, in-game results, horse racing, and proposition-style wagers.
The law would do away with the daily betting that accounts for the majority of New York sports betting revenue, although it does provide a limited exception that permits contracts linked to tournament-wide outcomes, such as championship winners. Sports contracts can make up as much as 90% of trading volume on sites like Kalshi.
Broader Legislative Push on Wagering
The ORACLE Act is a component of a larger initiative by New York lawmakers to address issues related to betting markets. On Thursday, Democratic Assemblymember Linda Rosenthal refiled a new bill, AB 9343, that would forbid in-game betting at all New York sportsbooks.
The bill aims to outlaw live betting, which now makes up about half of all bets made at sportsbooks, after athletic events start. The plan comes after an MLB gambling incident in which pitchers for the Cleveland Guardians were accused of altering pitches to benefit gamblers.
Enforcement Measures
Platforms that violate the ORACLE Act face severe fines. Fines for standard infractions start at $10,000 per incident and go up to $50,000 for repeated crimes. Platforms may be fined up to $1 million every day if they continue to operate after a court order to stop.
A 14-day waiting period before users can raise their deposit limits, age verification for users 21 and older, and a prominent display of resources related to problem gambling are among the operational conditions imposed by the law, which are comparable to those governing legal sports betting.
The bill’s introduction coincides with state authorities’ growing scrutiny of prediction markets, who argue that these platforms operate outside of official regulation and actively compete with licensed operators. The bill is still being reviewed by committee and would take effect one year after it is passed.
