BILL NUMBER: S8889
SPONSOR: COONEY
 
TITLE OF BILL:
An act to amend the financial services law, in relation to licensing and
regulation of prediction market platforms
 
PURPOSE:
To establish a regulatory framework requiring operators of prediction
markets to obtain a license from the Department of Financial Services,
implement consumer protections, maintain financial integrity standards,
and submit to DFS supervision.
 
SUMMARY OF PROVISIONS:
Section one: establishes the New York Prediction Market Regulation Act
Section two: amends the financial law by adding a new article (10) to
read as follows: Licensed required for the application and qualification
of standards of conduct and enforcement authority
Section three: is the effective date
 
JUSTIFICATION:
These platforms operate similarly to financial intermediaries and
exchanges and may solicit funds from New York residents without clear
supervision. Existing law does not explicitly require DFS oversight of
prediction market operators leading to regulatory gaps. It is the intent
of the Legislature that DFS license and supervise prediction market
companies to protect consumers, ensure financial stability, prevent
fraud, money laundering, protect market integrity and other harms.
 
LEGISLATIVE HISTORY:
New Bill
 
FISCAL IMPLICATIONS:
Minimal
 
EFFECTIVE DATE:
This act shall take effect on the