New Jersey senator introduces bill to restrict prediction markets
Table of contents
- Senate Bill 3692, introduced by Senator Shirley K. Turner, would ban political, death and catastrophic event markets in New Jersey.
- Sports-related prediction market contracts would be required to comply with existing state sports betting law and licensing requirements.
- The attorney general would gain authority to seek civil penalties and court orders against non-compliant operators.
New Jersey lawmaker Senator Shirley K. Turner has introduced Senate Bill 3692, which would impose new restrictions on prediction markets operating in the Garden State. The proposal would ban certain event contracts outright and force sports-related markets to follow state sports betting rules.
Targeted restrictions rather than a full ban
Rather than pushing for a full prohibition, Turner aims to draw boundaries.
Election outcome contracts, markets involving deaths and catastrophic event wagers would no longer be permitted. Under the proposal, platforms like Kalshi could not list contracts tied to the 2028 US presidential election or similar political outcomes.
Sports contracts would remain legal. Operators would need to secure proper licensing or partner with an approved New Jersey sportsbook.
DraftKings and FanDuel already operate under oversight from the New Jersey Division of Gaming Enforcement. Prediction platforms currently answer to the Commodity Futures Trading Commission (CFTC) at the federal level.
Turner pointed to that regulatory split as a core concern.
“New Jersey already has a comprehensive, tightly regulated sports betting system that prioritizes consumer protection, responsible gaming, and transparency. Allowing prediction markets to offer similar wagering opportunities without those same guardrails creates an uneven playing field and exposes residents to unnecessary risk,” said Senator Turner.
College sports loophole drives the debate
Current sports wagering rules in New Jersey prohibit bets on in-state college teams and events.
During NCAA Tournament East Regional games at Prudential Center, DraftKings and FanDuel cannot post odds. Kalshi, by contrast, lists contracts tied to college basketball matchups. That discrepancy sits at the heart of the legislative push.
“When money is tied to outcomes, it creates incentives for manipulation and abuse, whether involving elections, public discourse, or sporting events.”
“If a company is offering products that look and function like sports betting, they should be subject to the same rules, oversight, and responsibility to protect consumers. This legislation draws a clear line between innovation and exploitation,” Turner added.
Enforcement and industry implications
If enacted, SB 3692 would establish anti-fraud standards, transparency requirements and formal consumer safeguards. Authority would also extend to the attorney general, who could pursue injunctive relief and civil penalties against non-compliant operators.
Across the United States, prediction markets have expanded into sports contracts, political events and macro outcomes. Platforms such as Kalshi argue that federal commodities law grants them authority to list event-based contracts. State regulators increasingly question how those contracts intersect with established gambling frameworks.
The American Gaming Association has been vocal in its opposition to sports event contracts, arguing they amount to unauthorised nationwide sports betting under the guise of financial trading.
Former New Jersey Governor Chris Christie, who played a central role in the legal battle that led to nationwide sports betting legalisation, is now advising the AGA in its fight against prediction markets.
Meanwhile, major sportsbook operators have taken diverging positions. DraftKings, FanDuel and Fanatics have all left the AGA and launched their own prediction market products, while the trade group pushes for state-level regulation of the sector.
New Jersey’s sports betting market remains one of the largest in the country, generating billions in handle annually. A vote on SB 3692 has not yet taken place.
The bill adds New Jersey to a growing roster of states examining how to assert regulatory authority over prediction market operators that sit outside traditional state gambling oversight.
Should it advance, it could serve as a model for other high-revenue sports betting jurisdictions looking to close the gap between state-licensed sportsbooks and federally regulated event contract platforms.
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About the author
Bianca Máthe
Bianca Mathe joined the iGaming industry in 2018 and has since built extensive experience across multiple verticals, working with international gaming organizations on editorial, marketing, and media strategy. She brings a strong understanding of the regulatory, commercial, and technological forces shaping the global iGaming sector.
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