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H 913

An act relating to prohibiting certain prediction markets securities

2025-2026 Regular Session Introduced by Angela Arsenault and 12 co-sponsors

The bill would make it unlawful to offer, sell, or facilitate prediction market securities in Vermont.

Read first time and referred to the Committee on Government Operations and Military Affairs
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WeVote Research Nonpartisan
Bill Summary · H 913

Bill Summary: H 913 (2025-2026) – Prohibiting Certain Prediction Markets Securities

Purpose and intent

  • The bill aims to prohibit the sale, offer, or use of prediction market securities within Vermont.
  • Prediction markets are platforms where participants trade contracts whose payoffs depend on the outcome of future events (e.g., elections, weather, sports). These markets can resemble financial securities, depending on their structure.
  • The core objective is to restrict or ban these instruments to address concerns related to consumer protection, gambling-like activity, risk to participants, and alignment with existing Vermont securities or gambling laws.

Key provisions and changes (as described by the bill)

  • Prohibition on prediction market securities: The bill would make it unlawful to offer, sell, or otherwise facilitate prediction market securities within Vermont. This includes platforms and intermediaries operating in the state.
  • Scope of instruments: The term “prediction market securities” is applied to contracts whose value is contingent on the outcome of a future event, where participants may pay to enter and receive a payoff based on the event’s result. The bill may specify exclusions or definitions for certain related products, but the primary focus is on prohibiting these securities when they function as investment-like contracts tied to future events.
  • Enforcement and penalties: The bill is expected to establish enforcement mechanisms under existing Vermont securities or consumer protection authorities. Penalties for violations could include fines, injunctions, and other corrective actions consistent with Vermont law.
  • Administration and guidelines: The bill authorizes or directs relevant state agencies (likely the Department of Financial Regulation or corresponding government operations entity) to enforce and potentially issue guidance or rules to implement the prohibition.

Who or what would be affected

  • Market operators: Companies or individuals running prediction market platforms would be directly prohibited from offering these securities in Vermont.
  • Participants and consumers: Vermonters participating in or purchasing prediction market securities could be affected by the prohibition and any associated enforcement actions against providers.
  • Intermediaries and payment processors: Vendors and platforms that facilitate transactions for prediction markets could be subject to enforcement if they knowingly enable prohibited activity.
  • State regulators: Vermont agencies responsible for securities, gambling, and consumer protection would administer enforcement, investigations, and possible rulemaking.

Procedural and timeline aspects

  • Introduction and referral: The bill was introduced and read first time, then referred to the Committee on Government Operations and Military Affairs (as of 2026-02-25).
  • Next steps: The committee would study the bill, hold hearings, and may amend before sending it to the full House for consideration. If passed, it would proceed to the Senate (and potentially to a conference committee) and ultimately to the Governor for signature or veto.
  • Effective date: The bill’s text would specify an effective date or phase-in period after enactment; if not explicit, the act typically becomes effective on July 1 following enactment or as provided in the final language.

Additional notes

  • The bill lists a large group of co-sponsors, indicating bipartisan or broad backing in the chamber.
  • No fiscal impact details are provided in the summary available; future fiscal notes would typically outline potential regulatory costs, enforcement resources, and any impact on state revenue or consumer protection expenditures.

If you’d like, I can tailor this summary to focus on specific aspects (e.g., potential consumer protection implications, enforcement mechanisms, or comparison to existing Vermont securities laws) or add a brief glossary of terms like “prediction market securities.”

Compiled from official sources — confirm details with the bill’s official record.

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