New York Assemblyman Clyde Vanel has proposed new legislation aiming to restrict specific prediction market contracts within the state. The bill, known as the Oversight and Regulation of Activity for Contracts Linked to Events, or ORACLE Act, seeks to legislate against markets related to sports, political events, and death.

Vanel reintroduced this bill in the assembly chamber after first unveiling it in November. Notably, this legislation aims to prohibit betting contracts on sports outcomes, like NFL games, while still allowing wagers on league outcomes like the Super Bowl winner.

Key Aspects of the Bill

• Prohibition of Sports Event Contracts: The bill would ban contracts linked to individual sporting events but permit betting on broader league outcomes.
• Ban on Prop Betting: Contracts focusing on details of the match, such as which team scores first, will also be prohibited.

Monthly trading volumes on prediction markets in 2026
Monthly trading volumes on Polymarket (blue) and Kalshi (green) have skyrocketed over the past four months to record highs. Source: Token Terminal

The legislation also seeks to ban markets focusing on political elections, deaths, and other catastrophic events, aligning conditions for prediction platforms to self-regulate user engagement.

In summary, if enacted, these rules could significantly alter how prediction markets operate within New York, focused on curbing gambling activities linked to sensitive events.