Senate President Pro Tempore Shirley K. Turner has introduced legislation that would prohibit certain prediction markets from operating in New Jersey and require any markets tied to athletic events to comply with existing sports wagering laws.
The bill, S-3692, is intended to address platforms offering “event contracts” linked to future outcomes, including sports contests. According to Turner, these platforms operate outside the state’s established gaming regulatory structure.
“New Jersey already has a comprehensive, tightly regulated sports betting system that prioritizes consumer protection, responsible gaming, and transparency,” Turner said. “Allowing prediction markets to offer similar wagering opportunities without those same guardrails creates an uneven playing field and exposes residents to unnecessary risk.”
Prediction markets allow participants to purchase contracts based on the outcome of future events. While some operators describe the products as federally regulated financial instruments, state officials argue that sports-related contracts function in practice as wagering products.
Under S-3692, markets involving political elections, deaths, or catastrophic events would be prohibited. Any market offering contracts tied to athletic events would be required to obtain licensure under New Jersey’s sports betting framework or partner with a licensed operator.
The measure would also establish consumer protection standards, anti-fraud requirements, and transparency measures. It authorizes the Attorney General to seek injunctive relief and civil penalties against operators that violate the law.
“New Jersey should never allow people to profit from human suffering or turn our democratic process into a betting market,” Turner said. “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.”
A description accompanying the bill states: “Prohibits operation of certain prediction markets in this state; authorizes athletic event markets operating in compliance with sports wagering regulations; establishes public awareness campaign.”
Ongoing litigation with Kalshi
The legislative move comes as New Jersey remains in a legal dispute with Kalshi, a federally regulated prediction market operator.
Kalshi began offering sports-related prediction contracts around the Super Bowl in 2025 and has since expanded to a menu of markets covering multiple sports. The offerings resemble traditional sportsbook menus, though the company classifies them as event-based contracts.
The New Jersey Division of Gaming Enforcement (DGE) issued a cease-and-desist letter to Kalshi in March last year. A New Jersey judge subsequently granted the company a preliminary injunction allowing it to continue operating in the state. The DGE filed an appeal in June.
Kalshi is regulated by the Commodity Futures Trading Commission and maintains that federal oversight permits it to offer sports-related contracts. State regulators argue that prediction markets do not provide the same consumer protections required of licensed sportsbooks.
New Jersey Attorney General Jennifer Davenport has urged courts to consider a Massachusetts Superior Court ruling issued in January that halted Kalshi’s sports markets in that state.
Separate bill targets college partnerships
Turner also introduced a second measure, S-3656, which would prohibit institutions of higher education from entering into sports wagering partnerships. The bill currently includes only a description: “Prohibits institution of higher education from entering into sports wagering partnership.”
New Jersey lawmakers have previously advanced proposals addressing relationships between colleges and wagering operators, though several have stalled. Before leaving office, Gov. Phil Murphy signed Assembly Bill A1715/S3184 into law, expanding gambling addiction education at public colleges in the state.
Original article: https://www.yogonet.com/international/news/2026/02/27/117804-new-jersey-bill-seeks-ban-on-prediction-markets-and-requires-sports-contracts-to-follow-betting-law
