TL;DR
- New York debates ORACLE Act to regulate prediction markets.
- Polymarket signs major sponsorship deal with New York Rangers.
- New rules would significantly impact popular sports betting markets.
The New York Assembly reopens the debate on prediction markets. Assemblyman Clyde Vanel reintroduces the ORACLE Act, a bill that limits contracts on individual games, war, and mortality, while tightening consumer protections. The timing aligns with a marquee sponsorship: Polymarket signs on to display odds during New York Rangers games at Madison Square Garden.
The proposal does not close the entire category. Lawmakers permit markets on tournaments—for example, the Stanley Cup winner—yet ban prop bets tied to in-game events or player metrics. The text also prohibits markets on politics, catastrophic events, and lifespans. Additional safeguards include self-exclusion, time limits, age checks, and a bar on credit-card funding.
Impact on leagues, media, and platforms
MSG Sports confirms Polymarket as the exclusive prediction partner of the Rangers: in-arena LED presence, digitally enhanced dasherboards, a post-game segment, and exterior branding at MSG. Regulators and sponsors now move on parallel tracks in New York.
Over the latest measured week, sports account for 37% of notional trading on Polymarket and 93% on Kalshi; combined activity reaches about $2.3 billion. Limiting contracts on single games would hit the industry’s most active line just as media brands such as WSJ, Barron’s, and Yahoo Finance integrate market lines into coverage.
Supporters argue that prediction markets enhance forecasting by aggregating the wisdom of the crowd, producing probabilities that react in real time. Critics counter that many platforms operate as gambling venues without adequate safeguards, so tighter rules on access, funding, and player protection are warranted.
The ORACLE Act raises the cost of non-compliance
A platform that continues operating in New York after a court order faces $1 million per day in fines. Additional violations carry civil penalties starting at $10,000. The signal to operators is clear: comply or step aside.
Representative Ritchie Torres (D-NY) introduces a federal bill that bars government employees from using prediction markets when holding material non-public information, a response to suspicious wagers tied to recent international developments.
Operators, leagues, and sponsors now face a practical question set. Polymarket gains visibility with the Rangers and MSG, yet must map product menus to the ORACLE Act should lawmakers advance the bill. Kalshi, a supplier to Coinbase and Robinhood, may need to rebalance exposure if sports share declines under a tighter rulebook.
