HB 2497 — An Act amending Title 4 (Amusements) of the Pennsylvania Consolidated Statutes, providing for event outcome prediction wagering; imposing duties on the Pennsylvania Gaming Control Board and the Department of Revenue; imposing an event outcome prediction wagering tax and local share assessment; establishing restricted receipt accounts within the State Gaming Fund and the Commonwealth Financing Authority; and imposing penalties.

PRINTER'S NO.   3382

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 2497
                                                Session of
                                                  2026

     INTRODUCED BY BURGOS, KHAN, HILL-EVANS, SANCHEZ, McNEILL,
        VENKAT, WAXMAN, CEPEDA-FREYTIZ, BOROWSKI, CIRESI, PARKER AND
        CURRY, MAY 7, 2026

     REFERRED TO COMMITTEE ON GAMING OVERSIGHT, MAY 8, 2026


                                    AN ACT
 1   Amending Title 4 (Amusements) of the Pennsylvania Consolidated
 2      Statutes, providing for event outcome prediction wagering;
 3      imposing duties on the Pennsylvania Gaming Control Board and
 4      the Department of Revenue; imposing an event outcome
 5      prediction wagering tax and local share assessment;
 6      establishing restricted receipt accounts within the State
 7      Gaming Fund and the Commonwealth Financing Authority; and
 8      imposing penalties.
 9      The General Assembly finds and declares that a regulatory
10   framework at the State level for event outcome prediction
11   wagering is necessary, in light of the adoption of a
12   noninterference approach by the Commodity Futures Trading
13   Commission, to regulate prediction markets.
14      The General Assembly of the Commonwealth of Pennsylvania
15   hereby enacts as follows:
16      Section 1.    Title 4 of the Pennsylvania Consolidated Statutes
17   is amended by adding a chapter to read:
18                                CHAPTER 13G
19                     EVENT OUTCOME PREDICTION WAGERING
20   Subchapter
 1      A.    Preliminary Provisions
 2      B.    Licensing
 3      C.    Operations
 4      D.    Enforcement and Penalties
 5      E.    Miscellaneous Provisions
 6                                 SUBCHAPTER A
 7                            PRELIMINARY PROVISIONS
 8   Sec.
 9   13G01.   Scope of chapter.
10   13G02.   Definitions.
11   § 13G01.   Scope of chapter.
12      This chapter relates to the implementation, administration
13   and enforcement of event outcome prediction wagering.
14   § 13G02.   Definitions.
15      The following words and phrases when used in this chapter
16   shall have the meanings given to them in this section unless the
17   context clearly indicates otherwise:
18      "Applicant."      An event outcome prediction wagering platform
19   that applies for an event outcome prediction wagering license.
20      "Application."     An application for an event outcome
21   prediction wagering license under section 13G14 (relating to
22   application).
23      "Digital service."     An Internet website or mobile
24   application.
25      "Event contract."      A wagering agreement between an event
26   outcome prediction wagering platform and an individual that:
27            (1)   Serves as the basis for event outcome prediction
28      wagering.
29            (2)   Provides a payout based on the occurrence or
30      nonoccurrence of a specified future event or circumstance,

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 1      which may involve an election, the weather, awards, sports
 2      competitions or any other economic, political or social event
 3      or circumstance.
 4      "Event outcome prediction wagering" or "wagering."       As
 5   follows:
 6          (1)   The business of accepting wagers, setting odds to
 7      ensure a profit margin, making payouts and managing related
 8      transactions through an event contract by any system or
 9      method of wagering, including a digital service.
10          (2)   The term includes exchange wagering, parlays, over-
11      under, moneyline, pools and straight bets regarding a
12      prediction market.
13          (3)   The term does not include:
14                (i)    Pari-mutuel betting on the outcome of
15          thoroughbred or harness horse racing as authorized under
16          3 Pa.C.S. Ch. 93 (relating to race horse industry
17          reform).
18                (ii)     Lottery games of the Pennsylvania State Lottery
19          as authorized under the act of August 26, 1971 (P.L.351,
20          No.91), known as the State Lottery Law.
21                (iii)    Bingo as authorized under the act of July 10,
22          1981 (P.L.214, No.67), known as the Bingo Law.
23                (iv)    Small games of chance as authorized under the
24          act of December 19, 1988 (P.L.1262, No.156), known as the
25          Local Option Small Games of Chance Act.
26                (v)    Slot machine gaming and progressive slot machine
27          gaming as defined and authorized under this part.
28                (vi)    Keno.
29                (vii)    Fantasy contests.
30                (viii)    iLottery under Chapter 5 (relating to

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 1          lottery).
 2      "Event outcome prediction wagering license" or "license."        A
 3   license to conduct event outcome prediction wagering that:
 4          (1)   is issued by the board under this chapter; and
 5          (2)   authorizes an event outcome prediction wagering
 6      platform to conduct event outcome prediction wagering in
 7      accordance with this chapter.
 8      "Event outcome prediction wagering licensee" or "licensee."
 9   An event outcome prediction wagering platform to whom the board
10   has issued an event outcome prediction wagering license.
11      "Event outcome prediction wagering platform" or "platform."
12   A digital service or clearinghouse designed to facilitate event
13   outcome prediction wagering.
14      "Gross event outcome prediction wagering revenue."     As
15   follows:
16          (1)   The total money received by an event outcome
17      prediction wagering licensee from event outcome prediction
18      wagering minus the total of:
19                (i)    Money paid to participants as a result of the
20          wagering.
21                (ii)    Money paid to purchase annuities to fund prizes
22          payable to participants over a period of time as a result
23          of the wagering.
24          (2)   The term does not include money taken in a
25      fraudulent act perpetrated against the licensee for which the
26      licensee is not reimbursed.
27      "Participant."     An individual who executes an event contract,
28   whether or not the individual has commenced the event outcome
29   prediction wagering.
30      "Records."      As follows:

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 1            (1)   Information regarding event outcome prediction
 2      wagering that is:
 3                  (i)    Inscribed on a tangible medium or stored in an
 4            electronic or other medium.
 5                  (ii)    Retrievable in perceivable form.
 6                  (iii)    Aggregated or segregated in a manner
 7            prescribed by the board.
 8            (2)   The term includes books, accounts, documents, data
 9      and other materials, including applications and their
10      determinations, event contracts, financial information and
11      other relevant information as prescribed by the board.
12                                   SUBCHAPTER B
13                                    LICENSING
14   Sec.
15   13G11.   Wagering authorized.
16   13G12.   License required.
17   13G13.   Restrictions on wagering.
18   13G14.   Application.
19   13G15.   Review and determination.
20   13G16.   Issuance of license.
21   13G17.   Term of license.
22   13G18.   License renewal.
23   13G19.   Fees.
24   § 13G11.   Wagering authorized.
25      An event outcome prediction wagering platform may conduct
26   event outcome prediction wagering in accordance with this
27   chapter through the issuance of an event outcome prediction
28   wagering license.
29   § 13G12.   License required.
30      Before conducting event outcome prediction wagering, an event

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 1   outcome prediction wagering platform must obtain a license in
 2   accordance with this subchapter.
 3   § 13G13.    Restrictions on wagering.
 4      (a)     Age of participants.--An individual under 21 years of
 5   age may not participate in event outcome prediction wagering.
 6      (b)     Criminal purpose.--An individual may not participate in
 7   event outcome prediction wagering for a criminal or improper
 8   purpose, including:
 9            (1)   Money laundering.
10            (2)   Insider trading.
11            (3)   The use of nonpublic information that the individual
12      has acquired as a result of the individual's employment,
13      position or social or business connections, or otherwise, to
14      achieve a financial or other benefit.
15      (c)     Sensitive matters.--The board may restrict event outcome
16   prediction wagering involving sensitive economic, political or
17   social events or circumstances, including:
18            (1)   The conduct of an election, if the event outcome
19      prediction wagering could affect the outcome of the election.
20            (2)   Military conflicts.
21            (3)   Natural disasters.
22            (4)   Judicial rulings.
23   § 13G14.    Application.
24      (a)     Authorization.--An event outcome prediction wagering
25   platform may file an application for an event outcome prediction
26   wagering license. The application shall be in a form and manner
27   prescribed by the board.
28      (b)     Contents.--An application must include the following:
29            (1)   The name, business address and contact information
30      of the applicant.

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 1           (2)   The name, business address, job title and a
 2    photograph, consistent with standards prescribed by the
 3    board, of each principal and key employee of the applicant
 4    who will be involved in conducting the wagering.
 5           (3)   A brief description of the economic benefits
 6    expected to be realized by the Commonwealth, its
 7    municipalities and its residents if the wagering is
 8    authorized.
 9           (4)   The details of any financing obtained or that will
10    be obtained to adequately fund the cost of commencing the
11    wagering.
12           (5)   Information and documentation, as the board may
13    require, to establish by clear and convincing evidence that
14    the applicant:
15                 (i)    Can demonstrate, through financial background
16           and resources, the financial stability, integrity and
17           responsibility to establish and maintain a successful
18           wagering operation.
19                 (ii)    Has sufficient business ability and experience
20           to establish and maintain a successful wagering
21           operation.
22                 (iii)    Has or will have the financial ability to pay
23           the license fee under section 13G19 (relating to fees).
24           (6)   For each principal and key employee of the applicant
25    who will be involved in conducting the wagering, consent to a
26    background investigation to be conducted by the bureau, which
27    shall include fingerprinting in accordance with subsection
28    (c).
29           (7)   Other information as the board may require.
30    (c)    Fingerprinting.--Each principal and key employee of the

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 1   applicant who will be involved in conducting the wagering shall
 2   submit to fingerprinting by the Pennsylvania State Police or an
 3   authorized agent of the Pennsylvania State Police. The
 4   Pennsylvania State Police or the authorized agent shall submit
 5   the fingerprints to the Federal Bureau of Investigation for the
 6   purposes of verifying the identity of the individual and
 7   obtaining records of criminal arrests and convictions.
 8      (d)     Confidentiality.--Information submitted to the board
 9   under subsection (b)(4) and (5) may be considered confidential
10   by the board if the information would be confidential under
11   section 1206(f) (relating to board minutes and records).
12   § 13G15.    Review and determination.
13      (a)     Timing and basis of determination.--Within 120 days of
14   the receipt of a completed application for a license, the board
15   shall review and determine whether to approve the application
16   and grant a license to the applicant, based on:
17            (1)   Whether the applicant has demonstrated that the
18      information and documentation provided in the application are
19      accurate and complete.
20            (2)   The background investigation for each principal and
21      key employee of the applicant who will be involved in
22      conducting the wagering.
23            (3)   Other information as the board may require.
24      (b)     Notice.--The board shall provide written notice of its
25   determination under subsection (a), subject to the following:
26            (1)   If the board approves the application for the
27      license, the board shall specify any conditions for approval.
28            (2)   If the board disapproves the application for the
29      license, in whole or in part, the board shall provide the
30      applicant with the reasons for the disapproval, and the

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 1      applicant may file a new or amended application, as
 2      prescribed by the board.
 3   § 13G16.    Issuance of license.
 4      (a)     Issuance generally.--Upon approval of an application for
 5   a license, the board shall issue a license to the applicant,
 6   subject to the requirements under this chapter and any
 7   conditions prescribed by the board.
 8      (b)     Payment of fee.--The issuance of a license prior to the
 9   payment in full of the fee required by section 13G19 (relating
10   to fees) shall not relieve the applicant from complying with the
11   provisions of section 13G19.
12      (c)     Conditions.--As part of its approval of a license, the
13   board may attach conditions that the applicant must fulfill
14   prior to or after the issuance of the license.
15   § 13G17.    Term of license.
16      (a)     Validity.--A license shall be valid for one year,
17   subject to:
18            (1)   the denial, renewal or suspension of the license by
19      the board in accordance with this chapter; or
20            (2)   the relinquishment of the license by the licensee.
21      (b)     Renewal.--Notwithstanding section 1326 (relating to
22   renewals), a license may be renewed in accordance with section
23   13G18 (relating to license renewal).
24   § 13G18.    License renewal.
25      (a)     Authorization.--A licensee may seek to renew a license.
26      (b)     Procedures.--The board shall prescribe the process for
27   the renewal of a license, including:
28            (1)   The form of the application for the license renewal,
29      based on the information required under section 13G14
30      (relating to application).

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 1            (2)   The manner in which the application for the license
 2      renewal must be filed with the board, including deadlines for
 3      filing.
 4            (3)   The schedule for determining whether to approve the
 5      application for the license renewal.
 6            (4)   The schedule for compliance with any condition that
 7      the board has prescribed in connection with the license
 8      renewal.
 9            (5)   Any other procedure that the board may require.
10      (c)     Term.--A license renewal shall be valid for one year.
11      (d)     Payment of fee.--The issuance of a license renewal for a
12   licensee prior to the payment in full of the license renewal fee
13   required by section 13G19 (relating to fees) shall not relieve
14   the licensee from complying with the provisions of section
15   13G19.
16   § 13G19.    Fees.
17      (a)     Amount.--
18            (1)   Each licensee shall pay a nonrefundable license fee,
19      as part of the license to conduct wagering, in the amount of
20      $1,000,000.
21            (2)   Each licensee seeking a license renewal shall pay a
22      nonrefundable license renewal fee, as part of the license
23      renewal to conduct wagering, in the amount of $1,000,000.
24      (b)     Payment.--Subject to subsection (c), a licensee shall
25   remit the license fee or license renewal fee under subsection
26   (a) to the board within 60 days of the approval of the
27   application for the license or license renewal.
28      (c)     Failure to pay by deadline.--If a licensee fails to pay
29   the required license fee or license renewal fee in full within
30   the period specified in subsection (b), the board:

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 1            (1)   Shall impose a penalty on the licensee as prescribed
 2      by the board.
 3            (2)   May grant the licensee up to a six-month extension
 4      to pay the license fee or license renewal fee, or any
 5      remaining portion of the license fee or license renewal fee,
 6      and the penalty.
 7      (d)     License suspension.--The board shall suspend the license
 8   of a licensee if the licensee fails to pay the total license fee
 9   or license renewal fee and the penalty prior to the expiration
10   of an extension period granted under subsection (c)(2). The
11   suspension shall remain in effect until final payment is made.
12      (e)     Deposit of fees.--Notwithstanding section 1208 (relating
13   to collection of fees and fines), all license fees, license
14   renewal fees and penalties imposed in accordance with this
15   section shall be deposited into the General Fund.
16                                 SUBCHAPTER C
17                                  OPERATIONS
18   Sec.
19   13G21.   Commencement of event outcome prediction wagering
20                  operations.
21   13G22.   General duties of licensee.
22   13G23.   Records.
23   13G24.   Consumer protections.
24   13G25.   Disclosures.
25   13G26.   Wagering tax.
26   13G27.   Local share assessment.
27   13G28.   Compulsive and problem gambling.
28   13G29.   Criminal activity.
29   § 13G21.    Commencement of event outcome prediction wagering
30                  operations.

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 1      An event outcome prediction wagering licensee may not conduct
 2   event outcome prediction wagering until the board determines
 3   that the licensee:
 4          (1)     Is in compliance with the requirements of this
 5      chapter, including the payment in full of the license fee
 6      under section 13G19 (relating to fees).
 7          (2)     Has satisfied all the required conditions prescribed
 8      by the board and is prepared in all respects to conduct the
 9      wagering.
10   § 13G22.   General duties of licensee.
11      A licensee shall:
12          (1)     Upon request, provide the board with information
13      regarding processes to ensure:
14                (i)    The accuracy and security of wagering
15          operations, including internal audit protocols to
16          safeguard assets and revenues.
17                (ii)    Reliable financial and other records, accounts
18          and reports.
19                (iii)    The separate nature of deposits made by
20          participants for wagering and operating expenses of the
21          licensee.
22          (2)     Consistent with regulations of the board, establish
23      procedures for:
24                (i)    The development and execution of an event
25          contract.
26                (ii)    The receipt of wagers.
27                (iii)    The disbursement of payouts.
28                (iv)    The payment of license fees, license renewal
29          fees, penalties and taxes.
30                (v)    The maintenance of records.

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 1                   (vi)    The inspection or release of information for
 2             the purpose of investigations and audits in accordance
 3             with this chapter.
 4                   (vii)    The security of wagering operations, including
 5             general operating protocols for wagering.
 6                   (viii)    Providing information to the board for the
 7             implementation, administration and enforcement of this
 8             chapter.
 9   § 13G23.    Records.
10      (a)     Condition for continued operations.--As a condition of
11   continued operation of event outcome prediction wagering under a
12   license, a licensee shall maintain records pertaining to the
13   wagering and the participants in a manner and location within
14   this Commonwealth as prescribed by the board.
15      (b)     Nature of records.--Records shall be:
16             (1)   Segregated by separate accounts within the
17      licensee's records.
18             (2)   Immediately available for inspection upon request of
19      the board, the bureau, the department, the Pennsylvania State
20      Police or the Attorney General, or agents thereof, to
21      determine compliance with this chapter.
22             (3)   Submitted for audit as prescribed by the board.
23             (4)   Maintained for a period as prescribed by the board.
24   § 13G24.    Consumer protections.
25      (a)     Self-exclusion list.--An event contract must contain a
26   statement that a participant may request, and that a licensee
27   must honor the request, that the participant be placed on a
28   self-exclusion list to restrict the participant from making a
29   wager in accordance with the event contract for a specified
30   period.

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 1      (b)     Cooling off period.--An event contract must contain a
 2   statement that a participant may cancel the event contract for
 3   any reason within three days of signing the event contract, by
 4   providing to the licensee written notice, or other notice as
 5   specified in the event contract, of the cancellation. Short-term
 6   wagering under an event contract may not occur until the three-
 7   day period has lapsed.
 8      (c)     Secure transactions.--A licensee shall ensure that
 9   financial transactions and the submittal of other information
10   regarding wagering operations are secure and that any financial
11   or other information remains confidential in accordance with
12   Federal and State law, subject to any investigation or audit
13   authorized under this chapter.
14      (d)     Resolution of disputes.--An event contract must contain
15   information on how a participant may file a complaint with the
16   board regarding a dispute over the wagering or any other matter
17   contained in the event contract.
18   § 13G25.    Disclosures.
19      Each licensee shall ensure that:
20            (1)   The fees and conditions regarding its event outcome
21      prediction wagering are disclosed under an event contract in
22      a clear, concise and understandable manner to participants.
23            (2)   The rights of participants regarding wagering are
24      disclosed under an event contract in a clear, concise and
25      understandable manner to participants.
26   § 13G26.    Wagering tax.
27      (a)     Imposition.--Each licensee shall report to the
28   department and pay from its daily gross event outcome prediction
29   wagering revenue, on a form and in the manner prescribed by the
30   department, a tax of 20% of the daily gross event outcome

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 1   prediction wagering revenue.
 2      (b)     Deposits and distributions.--
 3            (1)   The tax imposed under subsection (a) shall be:
 4                  (i)    Payable to the department on a weekly basis.
 5                  (ii)    Based upon gross event outcome prediction
 6            wagering revenue derived during the previous week.
 7            (2)   All money owed to the Commonwealth under this
 8      section shall be held in trust for the Commonwealth by the
 9      licensee until the money is paid to the department.
10            (3)   A licensee shall establish a separate bank account
11      into which gross event outcome prediction wagering revenue
12      shall be deposited and maintained until the time that the
13      money is paid to the department under this section or paid
14      into the fund under section 13G27(a) (relating to local share
15      assessment).
16            (4)   The tax imposed under subsection (a) shall be
17      deposited into the General Fund.
18   § 13G27.    Local share assessment.
19      (a)     Imposition.--In addition to the tax imposed under
20   section 13G26 (relating to wagering tax), each licensee shall
21   pay on a weekly basis, on a form and in the manner prescribed by
22   the department, a local share assessment into a restricted
23   receipt account established within the fund.
24      (b)     Deposits and distributions.--
25            (1)   All money owed under this section shall be held in
26      trust by the licensee until the money is paid into the
27      account described in subsection (a).
28            (2)   Money in the account described in subsection (a) is
29      appropriated to the department on a continuing basis for the
30      purposes specified under this section.

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 1            (3)   The department shall, on a quarterly basis, make
 2      distributions from the local share assessments deposited into
 3      the account described in subsection (a) into a restricted
 4      receipt account established in the Commonwealth Financing
 5      Authority to be used exclusively for grants for projects in
 6      the public interest in this Commonwealth.
 7      (c)     Definitions.--As used in this section, the following
 8   words and phrases shall have the meanings given to them in this
 9   subsection unless the context clearly indicates otherwise:
10      "Local share assessment."     Two percent of a licensee's daily
11   gross event outcome prediction wagering revenue.
12   § 13G28.    Compulsive and problem gambling.
13      (a)     Transfer to Compulsive and Problem Gambling Treatment
14   Fund.--Each year, from the tax imposed under section 13G26
15   (relating to wagering tax), an amount equal to 0.002 multiplied
16   by the total gross event outcome prediction wagering revenue of
17   all active and operating licensees shall be transferred into the
18   Compulsive and Problem Gambling Treatment Fund established under
19   section 1509 (relating to compulsive and problem gambling
20   program).
21      (b)     Transfer to Department of Drug and Alcohol Programs.--
22   Each year, from the tax imposed under section 13G26, an amount
23   equal to 0.002 multiplied by the total gross event outcome
24   prediction wagering revenue of all active and operating
25   licensees shall be transferred to the Department of Drug and
26   Alcohol Programs or a successor agency to be used for drug and
27   alcohol addiction treatment services, including treatment for
28   drug and alcohol addiction related to compulsive and problem
29   gambling, as specified in section 1509.1 (relating to drug and
30   alcohol treatment).

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 1   § 13G29.    Criminal activity.
 2      Event outcome prediction wagering conducted by a licensee in
 3   accordance with this chapter shall not constitute a criminal
 4   activity under 18 Pa.C.S. § 5514 (relating to pool selling and
 5   bookmaking).
 6                                   SUBCHAPTER D
 7                            ENFORCEMENT AND PENALTIES
 8   Sec.
 9   13G31.   Noncompliance generally.
10   13G32.   Unauthorized wagering.
11   § 13G31.    Noncompliance generally.
12      An event outcome prediction wagering licensee that fails to
13   comply with the requirements of this chapter shall be subject to
14   administrative sanctions imposed by the board, including the
15   suspension or revocation of an event outcome prediction wagering
16   license, or other penalties authorized under this part.
17   § 13G32.    Unauthorized wagering.
18      (a)     Offense defined.--
19            (1)   A person may not conduct event outcome prediction
20      wagering, including entering into event contracts, if the
21      person:
22                  (i)    does not have a valid license; or
23                  (ii)    is not in compliance with the requirements of
24            this chapter.
25            (2)   A person may not knowingly provide services with
26      respect to event outcome prediction wagering if the event
27      outcome prediction wagering is conducted by a person without
28      a valid license.
29            (3)   An individual may not knowingly participate in event
30      outcome prediction wagering if:

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 1                (i)    the event outcome prediction wagering is
 2          conducted by a person without a valid license; or
 3                (ii)    the individual is under 21 years of age.
 4    (b)   Grading of offense.--
 5          (1)   A person that violates subsection (a)(1):
 6                (i)    For a first violation, commits a misdemeanor of
 7          the first degree and shall, upon conviction, be sentenced
 8          to pay a fine of not more than $10,000.
 9                (ii)    For a second or subsequent violation, commits a
10          felony of the second degree and shall, upon conviction,
11          be sentenced to pay a fine of not more than $25,000.
12          (2)   A person that violates subsection (a)(2):
13                (i)    For a first violation, commits a misdemeanor of
14          the first degree and shall, upon conviction, be sentenced
15          to pay a fine of not more than $10,000.
16                (ii)    For a second or subsequent violation, commits a
17          felony of the second degree and shall, upon conviction,
18          be sentenced to pay a fine of not more than $25,000.
19          (3)   An individual who violates subsection (a)(3):
20                (i)    For a first violation, commits a misdemeanor of
21          the first degree and shall, upon conviction, be sentenced
22          to pay a fine of not more than $10,000.
23                (ii)    For a second or subsequent violation, commits a
24          felony of the second degree and shall, upon conviction,
25          be sentenced to pay a fine of not more than $20,000.
26    (c)   Forfeiture.--
27          (1)   If a person conducts wagering in violation of
28    subsection (a)(1), the person shall forfeit all winnings that
29    resulted from the wagering.
30          (2)   The forfeited winnings under paragraph (1) shall be

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 1      deposited into the Compulsive and Problem Gambling Treatment
 2      Fund established under section 1509(b) (relating to
 3      compulsive and problem gambling program).
 4      (d)     Tax liability.--A person that conducts wagering in
 5   violation of subsection (a)(1)(i) shall be liable for all taxes
 6   required by this chapter in the same manner and amounts as if
 7   the person were a licensee.
 8      (e)     Deposit of fines.--All fines imposed in accordance with
 9   subsection (b) shall be deposited into the General Fund.
10                                    SUBCHAPTER E
11                              MISCELLANEOUS PROVISIONS
12   Sec.
13   13G41.   Regulatory authority.
14   13G42.   Temporary regulations.
15   § 13G41.    Regulatory authority.
16      In accordance with this chapter, the board shall promulgate
17   regulations that establish standards and procedures for the
18   implementation, administration and enforcement of event outcome
19   prediction wagering, including:
20            (1)   The form and manner of submitting an application for
21      a license to conduct the wagering, including consent to
22      conduct a background investigation.
23            (2)   The form and contents of an event contract.
24            (3)   The conduct of the wagering, including:
25                  (i)    The manner in which wagers are received, payouts
26            are remitted and point spreads, lines, odds and other
27            related matters are determined under an event contract.
28                  (ii)    Notice regarding minimum and maximum wagers for
29            the wagering.
30                  (iii)   An age verification system, to ensure that

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 1        individuals who are under 21 years of age do not
 2        participate in the wagering.
 3               (iv)   Safeguards to ensure against money laundering,
 4        insider trading or other activity involving a criminal or
 5        improper purpose.
 6               (v)    The restriction on wagering involving sensitive
 7        economic, political or social events or circumstances.
 8        (4)     In consultation with the department, the method for
 9    calculating gross event outcome prediction wagering revenue
10    and for the daily counting and recording of cash and cash
11    equivalents received in the conduct of the wagering,
12    including ensuring that internal controls are followed,
13    financial books and records are maintained and audits are
14    conducted.
15        (5)     Assistance with compulsive and problem gambling
16    relating to the wagering.
17        (6)     Providing information relating to the wagering in
18    the board's annual report required under section 1211(a.1)
19    (relating to reports of board).
20        (7)     How to provide written information to the board by
21    each licensee regarding the wagering, including rules,
22    payouts and other related matters specified in an event
23    contract.
24        (8)     Specifications regarding the security of information
25    provided in an event contract and submitted through a digital
26    service.
27        (9)     Access by the board to information regarding event
28    contracts and digital services used in the wagering to ensure
29    compliance with this chapter.
30        (10)     The maintenance and organization of records.

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 1            (11)   The complaint and dispute resolution process
 2      regarding wagering and actions taken in the performance of
 3      duties under an event contract.
 4            (12)   The amount and payment of the penalty described
 5      under section 13G19 (relating to fees).
 6   § 13G42.    Temporary regulations.
 7      (a)     Authorization.--No later than one year after the
 8   effective date of this subsection, to facilitate the prompt
 9   implementation of this chapter, the department shall issue
10   temporary regulations as may be necessary and appropriate to
11   implement, administer and enforce this chapter. Regulations
12   adopted after this one-year period shall be promulgated as
13   provided by statute.
14      (b)     Notice.--Upon the issuance of the temporary regulations,
15   the department shall transmit notice of the issuance of the
16   temporary regulations to the Legislative Reference Bureau for
17   publication in the next available issue of the Pennsylvania
18   Bulletin.
19      (c)     Posting.--The department shall post the temporary
20   regulations on its publicly accessible Internet website.
21      (d)     Expiration.--The temporary regulations shall expire no
22   later than two years following publication of the temporary
23   regulations in accordance with subsection (b).
24      (e)     Exemption from certain laws.--The temporary regulations
25   shall be exempt from the following:
26            (1)    Section 612 of the act of April 9, 1929 (P.L.177,
27      No.175), known as The Administrative Code of 1929.
28            (2)    Sections 201, 202, 203, 204 and 205 of the act of
29      July 31, 1968 (P.L.769, No.240), referred to as the
30      Commonwealth Documents Law.

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 1            (3)   Sections 204(b) and 301(10) of the act of October
 2      15, 1980 (P.L.950, No.164), known as the Commonwealth
 3      Attorneys Act.
 4            (4)   The act of June 25, 1982 (P.L.633, No.181), known as
 5      the Regulatory Review Act.
 6      (f)   Permanent regulations.--Prior to the expiration of the
 7   temporary regulations, the department shall propose for approval
 8   permanent regulations as provided by statute and in accordance
 9   with section 13G41 (relating to regulatory authority).
10      Section 2.    This act shall take effect as follows:
11            (1)   The addition of 4 Pa.C.S. § 13G42 shall take effect
12      in 60 days.
13            (2)   This section shall take effect immediately.
14            (3)   The remainder of this act shall take effect upon the
15      publication of the notice described in 4 Pa.C.S. § 13G42(b).




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