Lawmakers in New Jersey and Vermont have introduced measures to limit and ban specific types of event contracts in an effort to tighten control over prediction markets. On February 24, 2026, Senate Bill 3692 was introduced, which proposes to prohibit specific categories of prediction markets and create compliance requirements for operators that offer services in
Lawmakers in New Jersey and Vermont have introduced measures to limit and ban specific types of event contracts in an effort to tighten control over prediction markets.
On February 24, 2026, Senate Bill 3692 was introduced, which proposes to prohibit specific categories of prediction markets and create compliance requirements for operators that offer services in the state. The bill is sponsored by Senator Shirley K. Turner and John F. McKeon, who have stated that the measure will honor the Commodity Exchange Act and won’t interfere with federal law.
Under the bill, markets connected to political elections, catastrophic events, and death-related outcomes would be banned. Sports event contracts would be allowed if operators hold a sports betting license.
Revenue from sports event markets would be taxed at the same rate as online sports betting and allocated to the State General Fund. The Division of Gaming Enforcement would be tasked with supervising compliance.
In Vermont, House Bill 913 was introduced and read on February 25, 2026, and was later referred to the Committee on Government Operations and Military Affairs.
The bill aims to amend Vermont’s criminal statutes to add that illegal betting includes prediction markets connected to sports, contests, individuals, politics, disasters, war, and death. State contract law would also be amended to classify these agreements as void and allow recovery of lost funds.