Tarik Khan files bill to curb insider betting on prediction markets

1 articles · Updated · WHYY · May 4

The Pennsylvania proposal, filed on 29 April with bipartisan backing, follows allegations that Army Master Sgt Gannon Ken Van Dyke made $400,000 on Polymarket using classified information.
It would bar athletes from betting on their own games, politicians on their own elections, minors from participating, and wagers on high school sports, death or mass-casualty events.
Khan said the measure would not ban prediction markets outright but would require platforms to detect and report suspicious activity to protect consumers from manipulation and scams.

Can new laws eliminate insider trading without destroying the predictive power of these billion-dollar markets?

As regulators clash over prediction markets, will they be governed as financial tools or as state-controlled gambling?