New York Senate Bill S09414

New York 2025-2026 Regular Session

• Introduced: 3/10/26
• Refer: 3/10/26

Caption

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.