- Pennsylvania lawmakers are looking to pass a law to tax prediction markets similarly to traditional sports betting sites.
- Ohio and Iowa have taken similar measures, although they are still in the process of passing the bills.
- This could create millions of tax dollars for Pennsylvania to reinvest back into local resources.
HARRISBURG, Penn. – Another state has joined in the fight to regulate prediction markets, as Pennsylvania lawmakers aim to pass new legislation taking aim at the controversial platforms.
House Bill 2497 is a proposed act to amend Title 4 of the Pennsylvania Consolidated Statutes. It would give oversight of prediction markets to the Pennsylvania Gaming Control Board, as well as impose a tax on such markets and a local share assessment.
This could result in a major economic boost for the state, as prediction markets were estimated to have reached up to $44 billion in trading volume in 2025. If the bill were to pass, Pennsylvania would potentially be looking at millions of dollars in tax revenue to reinvest.
In 2025 alone, Pennsylvania recorded $186 million in tax revenue from legal sports betting sites.
Other states have begun taking similar measures, such as Ohio, which introduced a bill to establish a similar tax system. Rather than continuing to attempt to abolish prediction markets in the state altogether, lawmakers have taken the alternative route of imposing taxes to prevent the markets from continuing to take away revenue.
Another approach that Pennsylvania has considered using is applying a licensing fee for prediction markets, an approach that Iowa has begun the process of implementing. If Iowa’s bill were to pass, operators would be required to pay a $20 million licensing fee and pay taxes.
Pennsylvania’s proposed licensing fee is reportedly just $1 million per operator, significantly lower than Iowa’s. As of today, the Pennsylvania sports betting bill has been referred to the Gaming Oversight Committee but has yet to receive approval or a vote.
