NY’s AB 9251 Targets Prediction Markets and Prop Betting

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NY's AB 9251 Targets Prediction Markets and Prop Betting

New York legislators have introduced Assembly Bill 9251 to amend the state’s general business law, aiming to impose strict regulations on prediction market platforms. 

The Oversight and Regulation of Activity for Contracts Linked to Events Act, also called the “ORACLE Act,” seeks to curb speculative trading tied to athletic events. Lawmakers say the proposal will protect consumers, enhance market transparency, and maintain integrity across the Empire State’s rapidly evolving betting landscape.

Details About Assembly Bill 9251

Assembly Bill 9251 was introduced by Asm. Clyde Vanel, and proposes the addition of a new Article 48 to New York’s General Business Law. 

This section would define and regulate “prediction markets,” which allow users to open speculative positions on future events. Under the bill, platforms would face new restrictions, particularly concerning athletic event markets that resemble prop bets.

The legislation prohibits prediction market operators from letting New York users trade or speculate on individual athletic events. That includes markets that mirror prop bets or in-game predictions. However, the proposal appears to permit some exceptions, such as markets involving the overall outcome of a tournament. For instance, trading on which team wins the next NBA championship or on bracket-style March Madness markets would likely remain permitted.

In addition to curbing athletic event speculation, the bill introduces several consumer protection measures. It mandates that all participants must be at least 21 years old. It also requires operators to implement self-exclusion tools and bans the use of credit cards or gift certificates to fund accounts. Furthermore, providers must disclose the methods they use to determine settlement outcomes.

These provisions highlight the lawmakers’ intention to separate regulated sports betting. By tightening the rules, New York aims to ensure that only licensed operators offering legitimate wagers under the Gaming Commission’s oversight can operate.

Potential Impact on Retail and Online Sportsbooks in the US

If passed, Assembly Bill 9251 could influence how prediction market operators and US online sportsbooks design their platforms. Traditional sportsbooks licensed by state regulators might not feel immediate effects. Yet, the new definitions could blur boundaries between prediction markets and standard betting products.

Retail and online sportsbooks may need to review their offerings to ensure compliance, especially if they expand into innovative markets. The bill may discourage platforms from developing products resembling prediction markets to avoid legal risk.

Moreover, this legislation could set a precedent for other states evaluating speculative trading tied to sports events. As the US betting landscape matures, New York’s move underscores the growing effort to balance innovation with consumer protection.