Please ensure Javascript is enabled for purposes of website accessibility Khan, colleagues introduce legislation to crack down on insider trading in online betting markets

Khan, colleagues introduce legislation to crack down on insider trading in online betting markets

Rep. Tarik Khan    April 29, 2026 | 11:04 AM

PHILADELPHIA, April 29 — State Rep. Tarik Khan, D-Phila., and a bipartisan group of colleagues today announced new legislation to stop insider trading and manipulation on online “prediction markets,” where users can bet on the outcomes of real-world events such as elections and economic trends.

“Right now, people with inside information can game the system. We’re seeing more and more insider trading on these new prediction markets, and we won’t tolerate that in Pennsylvania. It’s time to put the right guardrails in place. No rigged system for insiders,” Khan said.

The bipartisan bill would establish clear, commonsense guardrails to protect consumers and ensure fairness, similar to standards used in traditional financial markets. Recent federal charges against a U.S. soldier accused of using classified information to profit from prediction market bets highlight the real-world risks when insider information is exploited. The legislation would prohibit insider trading and market manipulation, require platforms to detect and report suspicious activity, and ban participation by individuals with inside knowledge or conflicts of interest. It also would establish clear penalties for bad actors, keeps minors off these platforms, and prevents self-dealing by insiders.

In addition, the bill bans certain high-risk and unethical markets, including betting on death or mass casualty events, and restricts betting on high school sports.

The proposal would hold both individuals and platform operators accountable, with enforcement authority for the state Attorney General and local prosecutors and meaningful penalties for violations.

Khan said lawmakers are encouraging colleagues on both sides of the aisle to support the measure.

“This is about making sure nobody gets an unfair advantage just because they’re on the inside,” Khan added.

Co-prime sponsors of the legislation include Rep. Jeremy Shaffer, R-Allegheny, Rep. Danilo Burgos, D-Phila., Rep. Roman Kozak, R-Beaver, Rep. Jim Prokopiak, D-Bucks, Rep. Jamie Flick, R-Lycoming/Union, Rep. Anthony Bellmon, D-Phila., and Rep. Ana Tiburcio, D-Lehigh.

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