New York lawmakers are taking aim at prediction markets like NHL’s Rangers Ink Polymarket Deal

New York Assemblyman Clyde Vanel reintroduced legislation Wednesday that would limit prediction markets in one of the nation’s most populous states — a day before Polymarket struck a deal with the New York Rangers, the professional ice hockey team.

Under the ORACLE Actfirst introduced in November, companies like Polymarket would be prohibited from offering event contracts that depend on the outcome of specific games, such as Thursday’s scheduled showdown between the Rangers and Buffalo Sabres.

The legislation would still allow prediction markets to place bets on the outcomes of tournaments, such as who could be next to win the Stanley Cup. However, the legislation would ban “prop bets” that target specific events or player performances within individual games.

While the legislation would also ban prediction markets for political outcomes, “catastrophic events” such as war and mass shootings, and the longevity of individuals, the proposed rules hit one of the biggest moneymakers of the prediction markets in 2025: sports betting.

For example, sports accounted for 37% of Polymarket’s fictional trading volume last week, according to Dune Analytics. dashboard. For Kalshi, which powers the prediction market offerings for Coinbase and Robinhood, sports accounted for a whopping 93% of fictional trading volume. Together that amounted to $2.3 billion for both companies.

On Thursday, Polymarket became the Rangers’ “exclusive prediction markets partner,” allowing the company to display odds during games at Madison Square Garden. The deal was revealed in a press release by publicly traded Madison Square Garden Sports.

The company said Polymarket will be presented via LED signage, “digitally enhanced dashboard signage” that marks the perimeter of a hockey rink, and a special post-game segment. Polymarket’s branding will also be featured on the exterior of the company’s legendary stadium in Manhattan, MSG Sports added.

Proponents claim that prediction markets provide more accurate forecasts than experts or traditional polls by gauging “the wisdom of the crowd,” but critics argue that most are subtly disguised gambling platforms that offer no consumer protections.

According to Vanel’s legislation, prediction markets should have features that allow people to voluntarily ban themselves or limit the amount of time they spend gambling. The bill would also enforce age restrictions while preventing people from betting with credit cards.

If the Empire State’s prediction markets continue to operate after receiving a court order to shut down, they will be fined $1 million for each day they continue to operate in the area. Other violations of the ORACLE Act would carry civil penalties as low as $10,000.

In April Vanel suggested a bill that would direct the New York State Board of Elections to study how blockchain technology could be used to protect voter data and election results.

Earlier this week, U.S. Rep. Ritchie Torres (D-NY) said introduced a bill that would ban federal employees from using prediction markets if they have relevant inside information. That followed suspicious bets on the impeachment of Venezuelan President Nicolás Maduro.