With New York’s legislative session entering its final stretch, state lawmakers are still pressing ahead with efforts to regulate prediction markets, even as parallel enforcement actions from Attorney General Letitia James and other state entities continue to unfold.
New York Sen. Joseph Addabbo confirmed to DeFi Rate that he plans to bring his prediction market bill, S9414, before the Senate Racing and Gaming Committee next week, framing the effort as part of a broader statewide push to address the industry.
“Prediction markets are on the radar of everyone: the governor, gaming commission, attorney general’s office and the legislature,” Addabbo said. “It’s really a partnership here, not just legislatively.”
Addabbo stressed he ultimately wants to regulate prediction markets in New York rather than ban them outright, arguing “the harder thing to do is regulate.” He also acknowledged the bill faces steep timing challenges with only days left in session, but said legislative action, attorney general enforcement, and potential executive action could all move simultaneously as New York weighs how to regulate, or restrict, prediction market activity within the state.
Addabbo will bring forward S9414 for committee consideration
Addabbo filed S9414 in March, a bill he plans to officially introduce in committee next week. The proposal would extend many of New York’s existing gaming regulations to prediction market platforms while explicitly prohibiting trading tied to sports, politics, deaths, catastrophic events and security incidents. The bill would also give the attorney general broad rulemaking and enforcement authority over the category.
The measure mirrors the New York Assembly’s Oracle Act proposal, A9251A.
Attorney General James hasn’t waited for legislation of this type to begin enforcing the state’s laws in regard to prediction markets. Addabbo says that he supports James’ current efforts to hold exchanges accountable on the basis of existing statutes.
Factions of New York government forming partnership for prediction market regulation
Addabbo commented that S9414 is his contribution to New York’s efforts to provide residents and visitors with a positive trading experience.
“Legislatively is actually one of the slowest ways to address an issue,” said Addabbo. “We are still obviously watching the attorney general’s office. There are a lot of moving parts here…Now the question is, what else can we do? I’ve always said legislation, legislatively, is probably not the quickest or most efficient way of handling an issue.”
Addabbo said New York’s legislative push is designed to move in parallel with existing enforcement efforts rather than wait for them to conclude.
“I think it’s parallel lines,” Addabbo added. “I think simultaneously, because, again, the process being so long, legislatively, in terms of time, the lawsuit and the actions by the attorney general can coexist and go subsequent and simultaneous with the actions of the legislature. Again, the governor could do something administratively too at the same time. So I’m glad the attorney general is doing her thing. I am and I appreciate it. We’re going to do our thing legislatively.”
While Addabbo is cognizant of the Commodity Futures Trading Commission’s (CFTC) lawsuit against New York seeking to block enforcement of state law against licensed exchanges, he views it as a potential consequence of any legislative action.
“There is always a chance of a constitutional challenge or legal challenge,” Addabbo elaborated. “I basically do what I do while I can do it, before the CFTC or before the federal government can…do something that is consistent throughout the whole country.”
The comments reflect a growing recognition among state lawmakers that the legal window for state-level prediction market regulation could narrow if federal courts or the CFTC ultimately establish broader nationwide authority over event contracts.
Addabbo stresses regulation, not prohibition
Addabbo stresses that his desire is to regulate prediction markets, not ban them.
“I’ve always said that the easy thing to do is bring a lawsuit,” Addabbo stated. “To ban something is very easy or easier. The harder thing to do is regulate.”
Addabbo said he wants prediction markets to operate legally within New York under a regulated framework that benefits both consumers and the state.
“I want to regulate prediction markets in New York,” Addabbo said. “I want to do business with others so it’s a win-win situation. A win for the state, because obviously we’ll get revenue. It’s a win for the other company, whoever the entity is, to do legalized business and not get sued by New York. That’s a win, and it’s a win for the residents of New York to get a safer, more regulated product.
“So I was mindful of the law system, always mindful of what the federal government is doing. But really I encourage New York, those powers that be, to regulate it so it’s legal and a better, safer product in New York.”
Calendar posing a substantial obstacle for S9414
The most significant obstacle to getting S9414 or A9251A to New York Gov. Kathy Hochul may not be support in either chamber of the legislature. The remaining time in the session could be the biggest issue.
“We have 16 days left, most likely in the off-session,” Addabbo explained. “A late budget in New York will dictate that we have less time to do other legislation other than the budget, and we have a budget that’s over a month late, so we only have 16 days left to do legislative work.”
Addabbo acknowledged he is not optimistic the legislation can fully advance before the end of session, reinforcing his view that lawsuits and administrative action may move faster than the legislative process.
“I’m an optimistic person, but I’m also a realist,” said Addabbo. “I’ll get the prediction bill maybe out of committee, but I’m not hopeful or optimistic that I’m going to get it to the floor and then, of course, voted on by the Senate and the Assembly.”
“So again, we’re seeing that legislatively is not the best way to address an issue unless the governor really wants to roll up the sleeves and regulate prediction markets or do online gaming, whatever it may be. So that’s where we’re at in New York.”
Addabbo signals prediction market push will continue beyond 2026
Addabbo is not going to let the timing challenges deter him from pressing the issue in future sessions. He hopes to recruit allies for future legislative efforts.
“Every year that goes by, every session that goes by, that we don’t regulate prediction markets or regulate online gaming, we lose that opportunity of helping a person who might have an addiction, or on their way to getting an addiction, and we lose billions in revenue,” Addabbo said.
“So I can’t be the only one out there advocating. I do need my counterparts in the Assembly to go along with me, and I need the governor to buy into this mission too.”
Even if the legislation stalls this session, Addabbo indicated New York’s broader effort to regulate prediction markets is unlikely to fade as state officials continue weighing consumer protections, enforcement powers and potential tax revenue tied to the rapidly expanding industry.
“So I will continue to talk about facts and figures and why it’s rational thought to regulate prediction markets and iGaming.”
