Prediction Markets Security and Integrity Act of 2026

The bill treats online prediction markets as a kind of gambling and sets national safeguards for how they must operate. It bans insider trading and manipulation on these platforms and blocks listings that are easy to rig, involve war or death, break the law, or are against the public interest as defined by the Attorney General. Operators must write and enforce clear rules for their users and clearly explain how each bet will be decided. Online prediction markets may only operate in a state if that state creates a "State wagering program" that the U.S. Attorney General approves. To get approval, a state must set up a public regulator, license operators, and limit betting to people physically in that state or in partner states or tribal lands under approved compacts. States must forbid live in‑game bets on amateur and college sports, any bets once a sports event has started, certain bonuses and VIP programs tied to heavy gambling, and some high‑risk bet types. The bill requires many consumer protections. No one under age 21 can hold an account or place a bet. States must offer self‑exclusion options so people can block themselves from betting in that state or nationwide, with a national list run by the Department of Health and Human Services. Operators must verify each user’s age, identity, and location; limit how often people can deposit, ban credit card deposits, and check affordability when bet amounts get high. They must make it easy to withdraw winnings, clearly disclose odds, terms, and bonuses, and set aside enough money to cover customer balances and unpaid winning bets. The bill also sets strong rules about data, reporting, and integrity. Operators must keep detailed records on all wagers, share anonymized betting data quickly with state regulators and the U.S. Attorney General, and file reports on suspicious transactions with both regulators and sports organizations. States must require background checks for operators and employees, ongoing audits, and systems of internal controls. Advertising must include addiction help information, avoid targeting minors or problem gamblers, cannot include certain promotional phrases, and cannot be broadcast during most daytime hours or during live sports. The bill adds civil and criminal enforcement powers for the U.S. Attorney General and lets state attorneys general sue in federal court, while making clear that states and tribes may adopt stricter or outright prohibitive rules.