Lawmakers in at least 16 states have introduced legislation this year to regulate prediction markets in some way, according to a Pew Research study published Tuesday. The surge in state-level action signals growing bipartisan concern over the integrity of electoral processes when financial wagers are tied to outcomes.
The push comes as prediction markets — platforms where users bet on events like election results — have grown in popularity and drawn scrutiny from federal regulators. While such markets can offer real-time polling data, critics warn they may incentivize manipulation or undermine public trust in democratic systems.
Pew's analysis did not specify which states have introduced bills or the exact scope of proposed restrictions, but noted that more than half of U.S. states now have some form of ban on election betting. The study relied on publicly available legislative records and was published without external funding.
The legislative flurry could reshape how prediction markets operate nationwide, potentially forcing platforms to geo-block users in restricted states or face penalties. Observers expect the patchwork of state laws to prompt renewed calls for federal clarity from the Commodity Futures Trading Commission.
Some advocates argue that regulated prediction markets can provide valuable information and that outright bans stifle innovation. The debate remains unresolved as more states weigh competing interests of transparency and electoral integrity.