Relates to prediction markets

The entire amendment to the Racing, Pari-Mutuel Wagering and Breeding Law (old Section 2, adding new section 913) was deleted. That provision had prohibited licensed gaming entities from offering prediction markets and imposed fines of $10,000-$100,000 per violation with license revocation.

A new Section 1 containing legislative findings was added. It states that certain prediction market platforms have 'strayed far from bona fide commodities' and specifically calls out multi-leg combination contracts that replicate sportsbook parlays, noting retail participants lost hundreds of millions of dollars in the current year alone. The findings declare the act is enacted under police power to protect consumers.

The list of prohibited markets changed: 'security markets' (betting on publicly traded company prices) was removed from the prohibited list, and 'unlawful commodity markets' was added. The prohibition language was broadened from merely 'open a speculative position' to 'open, hold, trade, or settle a speculative position, or otherwise participate.'

Age restrictions (minimum 21), exclusions from participation (self-excluded persons, insiders, employees), settlement source disclosure requirements, at-risk trading measures (deposit limits, self-exclusion tools, HOPE NY hotline display, employee training), advertising restrictions (no targeting minors, no push notifications for bonuses, no 'risk-free' language), credit card and gift certificate prohibitions, market-making restrictions (banning gaming companies as liquidity providers), and insider trading/market manipulation detection requirements were all removed.

The definition of 'prediction market' was simplified by removing the 'in a bid-ask format' requirement, and the separate 'bid-ask format' definition was deleted entirely. A new definition of 'unlawful commodity' was added, covering any commodity offering that violates state or federal law (including the Commodity Exchange Act), with determination by controlling judicial decision or reasonable AG interpretation in absence of one.

The 'political market' definition was narrowed: references to federal elections and the actions of the federal government, its agencies, employees, officers, or leaders were removed. Only New York statewide and municipal elections, and state/municipal government actions, remain covered.

The 'prediction market platform' exclusion was broadened. Previously it excluded platforms that were licensed, would be required to be licensed, or were prohibited under the racing law. Now it excludes any platform (or portion thereof) to the extent activity is conducted pursuant to a license issued under the racing law or other state law.

The penalties section now explicitly states the attorney general has independent enforcement authority that is 'not contingent upon, or limited by, the action or inaction of the commodity futures trading commission.' The enhanced penalty (greater of 2x profits or $50,000) now applies only to violations of the prohibited markets section rather than also covering the removed exclusions and market-making sections.

The effective date was shortened from one year after enactment to 90 days after enactment.