An Act Prohibiting Prediction Market Platforms From Allowing Use By Or Advertising To Consumers Under The Age Of Twenty-one.
HB 5038 would create a new state regulatory framework for prediction market platforms, which the bill defines as services that let consumers take speculative positions on the outcomes of future events in a bid-ask format. The bill generally treats these platforms as a form of wagering activity, while expressly excluding sports wagering, online casino gaming, internet games, and certain financial-market products tied to securities, commodities, or interest rates.
The core policy change is an age restriction: prediction market platform providers could not allow anyone under 21 to register or open speculative positions. Platforms would also have to verify that a consumer is at least 21 and physically present in Connecticut before allowing account use, and they would need to offer self-exclusion tools that let users block account creation, block trading activity, or set spending limits. If a provider accidentally allows an underage user, it must suspend the account, close positions, return funds, and bar further use until the person turns 21.
The bill would add new sections to the General Statutes effective July 1, 2027, creating direct obligations for prediction market platform providers and giving enforcement authority to the Attorney General and rulemaking authority to the Department of Consumer Protection. Violations could result in civil penalties of up to $10,000 per violation, or up to $50,000 per violation for a persistent course of conduct. The bill also requires DCP to adopt implementing regulations and directs DCP, in consultation with the Attorney General, the Mohegan Tribe, and the Mashantucket Pequot Tribe, to study the effects of prediction market platforms on underage use, advertising, problem gambling, and state gaming revenues, with a report due by February 1, 2027.
Because the bill text and available context do not include committee testimony, floor debate, or recorded votes, there is no documented public sentiment in the provided materials. The bill appears to be a governor’s budget-related proposal, suggesting executive support, but the record here does not show broader legislative support or opposition. The structure of the bill indicates a precautionary, consumer-protection approach focused on youth access and gambling-related harms.
The main points of potential contention are likely to be whether prediction markets should be regulated like gambling, whether a 21-and-over standard is appropriate, and whether the state should restrict advertising to college campuses and youth-oriented media. Another likely issue is federal preemption, since the bill expressly states that any conflicting provision would yield to federal law. The bill also raises possible concerns for platform operators about compliance costs, age and location verification, advertising restrictions, and the scope of enforcement penalties.