Governor's Bill No. 5038 aims to prohibit prediction market platforms from allowing consumers under the age of twenty-one to participate or be targeted in advertisements. The bill defines key terms such as "consumer," "prediction market platform," and "bid-ask format," and establishes that no prediction market platform provider may permit individuals under twenty-one to register or open speculative positions. Additionally, the platforms must implement age verification systems and provide a voluntary self-exclusion process for consumers. If a provider inadvertently allows an underage consumer to use their platform, they must suspend the account and close all positions.

The bill also mandates that all advertisements for prediction market platforms clearly state the age requirement and prohibits any marketing aimed primarily at individuals under twenty-one. Violations of these provisions could result in civil penalties of up to ten thousand dollars per violation, with higher penalties for persistent violations. The Department of Consumer Protection is tasked with adopting regulations to enforce these provisions, and a study will be conducted to assess the impact of prediction market platforms on residents, particularly focusing on underage use and advertising practices. The act is set to take effect on July 1, 2027, with the study commencing earlier on July 1, 2026.