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Sports, disasters and elections face new limits in New Jersey
Under the Senate proposal, prediction-market operators would have to post their settlement sources and keep them available to users. Courts could also hit repeat violators with civil penalties of $1 million a day.
A New Jersey proposal would pull prediction markets under state gambling law, treating them as speculative positions on future events rather than a free-floating online product. It would also authorize licensed athletic event markets under the same broader framework.
Operators would have to identify the settlement source they use, keep that source available to users and avoid settling wagers on proprietary or confidential information. They would also have to report suspected fraud, manipulation or insider trading to the Attorney General.
The bets lawmakers draw a line around
The measure would ban catastrophic event markets, death markets and political markets, including wagers tied to wars, disasters, mass shootings and elections for federal, state and local office. It would also bar certain public officers and employees from working for athletic event markets, and keep candidates and campaign staff from opening speculative positions on political markets.
Most revenue earned from New Jersey residents would carry a 10 percent surcharge, though not revenue from athletic event markets. Operators that keep going after a court order could face civil penalties of $1 million a day.