Enacts the oversight and regulation of activity for contracts linked to events (ORACLE) act to provide for requirements and restrictions on prediction markets.
Impact
If enacted, S09414 would amend the general business law and introduce new regulatory standards for prediction markets. This includes comprehensive measures for consumer protection, such as mechanisms for self-exclusion for consumers and clear guidelines for entity participation. The requirement for transparency in market operations, including the disclosure of settlement sources and restrictions on certain types of markets, aims to create a safer environment for consumers engaging in predictive trading activities. The amendments will create a clear legal backdrop and rules for prediction markets, which are currently ambiguous under existing law.
Summary
Bill S09414, titled the 'Oversight and Regulation of Activity for Contracts Linked to Events (ORACLE) Act,' aims to regulate prediction markets in New York. The bill establishes a framework for the operation of prediction markets, specifically targeting speculative positions on future events. It sets forth definitions and stipulations for participating entities, ensuring that only licensed and compliant platforms operate within the state. The legislation seeks to promote consumer protection by establishing age restrictions, advertising guidelines, and measures to prevent at-risk trading behaviors.
Contention
The bill has ignited various points of contention among legislators and stakeholders. Proponents argue that the regulation of prediction markets will provide necessary oversight and protect consumers from potential exploitation and risks associated with gambling-like activities. On the other hand, opponents may see this as an overreach of government regulation, potentially stifling innovation and limiting the growth of predictive markets in New York. Furthermore, specific prohibitions against markets related to political events or catastrophic outcomes highlight concerns about ethical considerations in allowing such speculative practices.
Same As
Enacts the oversight and regulation of activity for contracts linked to events (ORACLE) act to provide for requirements and restrictions on prediction markets.
Enacts the oversight and regulation of activity for contracts linked to events (ORACLE) act to provide for requirements and restrictions on prediction markets.
Requires a license from the department of financial services to operate a prediction market; defines "prediction market" as any platform, electronic or physical, that allows participants to place wagers, trades, or financial positions on the outcome of future events, including but not limited to political, economic, weather, or other contingencies, where payouts are tied to event outcomes; provides for standards of conduct and enforcement authority by the department of financial services.
Wagers and other activities regarding prediction markets prohibited, criminal convictions made a disqualification for receiving a lawful gambling license, and criminal penalties provided.
Certain wagers and other activities regarding prediction markets prohibition provision and certain criminal convictions disqualifying for receiving a lawful gambling license provision
Prohibits operation of certain prediction markets in this State; authorizes athletic event markets operating in compliance with sports wagering regulations; establishes public awareness campaign.
Enacts the "New York fundamental artificial intelligence requirements in (FAIR) news act"; provides transparency requirements for news media content composed, authored, or otherwise created through generative AI.
Enacts the "no gambling ads for kids act" under which certain covered platforms and social media platforms are prohibited from advertising a service permitting gaming-related gambling, predictive market wagering, online sweepstakes gaming, sports-related gambling, and/or traditional online gambling to minors.