Texas HB 598 Would Set Age and Contract Limits for Prediction Markets

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Texas Rep. Salman Bhojani filed House Bill 598 on Nov. 9 to regulate prediction-market event contracts and related operator requirements, according to the Texas Legislature’s bill history page. The proposal would set a minimum user age of 21 and prohibit certain categories of contracts, according to SBC Americas.

HB 598 would restrict contracts and require geolocation safeguards

SBC Americas reported that HB 598 would prohibit contracts involving war, terrorism, death, immigration enforcement and natural disasters. The bill would not ban sports or political markets.

The proposed operator requirements would limit advertising aimed at young users and require commercially reasonable geolocation measures. They would also bar users from circumventing geolocation restrictions through VPNs or proxy servers.

The Legislature’s history page for HB 598 lists the measure for the 90th regular session. Its introduced caption includes civil penalties.

Texas comments come amid calls for federal restrictions

SBC Americas also reported that incoming Texas Lt. Gov. Vikki Goodwin expressed willingness to work with senators on prediction market regulation.

“I’ve heard just how prevalent it is, how easy it is to access it on your phone, and the concern that young people in particular might go overboard,” Goodwin told local media, according to SBC Americas.

“So, if we need to put some regulation in place, I certainly look forward to working with senators on that issue.”

At the federal level, California Rep. Ro Khanna called sports prediction markets “sports betting disguised as financial trading” and urged Congress to ban them, SBC Americas reported.

Sens. Jeff Merkley and Elizabeth Warren helped author and file the STOP Corrupt Bets Act. That proposal would ban prediction market contracts on elections, government actions, war and sports.

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Source: As reported by SBC Americas.