Illinois General Assembly - Full Text of HB5059

LRB104 18213 LNS 31652 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5059

Introduced 2/10/2026, by Rep. Edgar González, Jr.

SYNOPSIS AS INTRODUCED:

New Act

Creates the Oversight and Regulation of Activity for Contracts Linked to Events (ORACLE) Act. Prohibits a prediction market platform provider from permitting any consumer under the age of 21 to register or to open any speculative position on a prediction market. Requires a prediction market platform provider to exclude certain individuals from participation in a prediction market platform. Prohibits certain types of prediction markets. Requires providers to implement and adhere to responsible gaming measures. Sets forth advertising restrictions, restrictions on credit-based products and gift certificates, and restrictions on market making. Requires prediction market platform providers to implement commercially reasonable and technically feasible measures to detect and prevent any fraud or manipulative conduct. Establishes penalties for violation of the Act. Provides that the Attorney General may adopt rules to implement and administer the Act. Contains a severability clause.

A BILL FOR

AN ACT concerning gaming.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Oversight and Regulation of Activity for Contracts Linked to Events (ORACLE) Act.

Section 5. Definitions. As used in this Act:

"Athletic event" means an organized competition between 2 or more persons or groups of persons that involves physical or mental skill. "Athletic event" includes horse racing and prop betting.

"Athletic event market" means a prediction market that enables a consumer to open a speculative position on the outcome of a specific athletic event or events or events within an athletic event or events. "Athletic event market" does not include the opening of a speculative position on the final outcome of an athletic tournament or on a combination of all outcomes of each event within an athletic tournament, such as opening a speculative position on the overall champion of a sports tournament or a bracket predicting all results of a tournament.

"Athletic tournament" means a series of athletic events in which the winners of individual events progress to compete in subsequent events until a final overall winner is determined.

"Bid-ask format" means a format in which parties submit offers to buy positions on a prediction market at a specific price or range of prices and offers to sell positions at a specific price or range of prices, with market prices determined through the matching of these offers.

"Catastrophic event market" means a prediction market that enables a consumer to open a speculative position on an outcome that relates to war, state or national emergencies, natural or human-made disasters, mass shootings, acts of terrorism, or public health crises or the ancillary effects thereof.

"Clearly and conspicuously" or "clear and conspicuous" has the meaning given to those terms in Section 5 of the Automatic Contract Renewal Act.

"Consumer" means an individual who is a resident of the State.

"Death market" means a prediction market that enables a consumer to open a speculative position on the death, assassination, or attempted killing of a person or group of persons, or on mass casualty events. "Death market" does not include a prediction market where the outcome could indirectly depend on a death as a consequence of a person's inclusion in the market, such as a lawful prediction market which depends on a person engaging in some action where the person's death would naturally settle the market as such person not engaging in such action.

"Illinois Gambling Help Hotline" means the Illinois Gambling Help Hotline 1-800-GAMBLER and the texting help line of texting "ILGAMB" to 833234.

"Liquidity provider" or "market maker" shall mean any person or entity that, directly or indirectly, and whether manually or through automated means, offers to buy or sell a position in a prediction market with the primary purpose of facilitating trading, supporting price discovery, or maintaining market liquidity by posting bids and asks.

"Prediction market" means a system that allows consumers to open a speculative position on the outcome of future events in a bid-ask format. "Prediction market" includes all forms of prediction markets regardless of the mechanisms or structures used for opening speculative positions on future events.

"Prediction market platform" means any platform or service that provides consumers with the ability to open speculative positions on the outcomes of future events.

"Political market" means a prediction market that enables a consumer to open a speculative position that relates to:

(1) a federal election, a State election, or an election held by a unit of local government within the State; or

(2) the actions or conduct of the federal government or its agencies, employees, officers, or leaders, the State government or its agencies, employees, officers, or leaders, or a unit of local government in this State or its agencies, employees, officers, or leaders in their official government capacity.

"Security market" means a prediction market that enables a consumer to open a speculative position on the price of a publicly traded company.

"Settlement source" means an entity from which the prediction market platform obtains or sources information for the purpose of determining the outcome of a market.

"Speculative position" means a financial commitment made by a participant in a prediction market.

Section 10. Age restrictions.

(a) No prediction market platform provider shall permit any consumer under the age of 21 to register or to open any speculative position on a prediction market.

(b) If the prediction market platform provider has inadvertently permitted a consumer that is under the age of 21 to use the prediction market platform provider's platform and such prediction market platform provider discovers the error, the prediction market platform provider shall immediately suspend that account, close all positions on that account, pay out to the consumer any funds on the account, and prohibit the individual from further use of the provider's platform until such consumer has attained the age of 21.

Section 15. Exclusions from participation. A prediction market platform provider shall maintain and enforce policies to exclude certain individuals from participation, including:

(1) any person who has self-excluded from using the platform;

(2) any officer, director, employee, or agent of the prediction market platform provider or its affiliated companies;

(3) any officer, director, employee, or agent of a source settlement provider;

(4) any person who has insider information on a particular market or markets; and

(5) any other category of persons the Attorney General by rule designates as excluded.

The exclusion shall be enforced until the person no longer meets the criteria required for exclusion under this Section.

Section 20. Certain markets prohibited. A prediction market platform provider shall not permit State users to open a speculative position on the following types of markets:

(1) catastrophic event markets;

(2) political markets;

(3) death markets;

(4) security markets; and

(5) athletic event markets.

Section 25. Settlement sources.

(a) Each prediction market platform provider shall maintain a comprehensive list of all settlement sources that the prediction market platform provider uses to determine the outcomes of the prediction market platform provider's prediction markets and shall make this list readily accessible to consumers at all stages of the registration process.

(b) Each prediction market platform provider shall display, on every section of the prediction market platform provider's website in which a person can open a speculative position on a specific prediction market, the settlement source for the settlement of such market.

(c) No prediction market platform provider shall settle a market based on proprietary or confidential information.

Section 30. Responsible gaming measures.

(a) Each prediction market platform provider shall implement and adhere to responsible gaming measures to protect consumers who may be at risk of problem gambling behavior. Such measures shall include, at a minimum:

(1) providing a mechanism by which an individual can voluntarily self-exclude from the platform for a definite or indefinite period. If a consumer self-excludes, the prediction market platform provider must immediately block such consumer's access to opening a speculative position and take reasonable steps to prevent the consumer from creating new accounts;

(2) allowing consumers to set daily, weekly, or monthly limits on the amount they can deposit or spend in opening speculative positions, if they so choose. The platform may not encourage consumers to remove or increase limits once set; any request to increase a self-imposed limit shall have a 14-day waiting period;

(3) providing features that allow consumers to limit the amount of time spent on the platform, and periodic notifications that remind consumers of how long they have been active and their net spending or winnings during that session; and

(4) clearly posting and providing the Illinois Gambling Help Hotline number "1-800-GAMBLER" and the texting help line by texting "ILGAMB" to 833234 on the platform's website and apps in any advertisements. No other problem gambling hotline may be displayed.

All advertisements and marketing materials must include a responsible gambling message and the Illinois Gambling Help Hotline number in a clear and conspicuous manner.

(b) Each prediction market platform provider shall implement training for employees to recognize and respond to indications of problem gambling, including how they can direct consumers to resources for help.

(c) Each prediction market platform provider shall implement policies to identify problem gambling and shall, upon making a determination that a user is engaged in problem gambling, prohibit access to the provider's service.

(d) Each prediction market platform provider shall comply with the advertising standards set forth in Section 35.

Section 35. Advertising restrictions.

(a) All advertising by a licensed prediction market platform shall be truthful and not misleading.

(b) A prediction market platform provider shall be prohibited from sending push notifications to users that pertain to bonuses or prediction markets that the user does not currently have an open speculative position on.

(c) No advertisement shall depict a person under the age of 21, except incidentally.

(d) No advertisements shall target persons under the age of 21 or other vulnerable classes of persons, which the Attorney General may designate by rule.

(e) A prediction market platform provider shall not advertise in a manner that is calculated to reach individuals on the self-exclusion list or individuals known to have engaged in problem gambling.

(f) Every advertisement for a prediction market platform shall include the Illinois Gambling Help Hotline number. If the advertisement is a video, the Illinois Gambling Help Hotline number shall be visible for the entire duration of the video. If the advertisement is auditory only in nature, the Illinois Gambling Help Hotline number shall be stated at the beginning and end of the advertisement.

(g) No advertisement may suggest that the prediction market product is endorsed by the State or any governmental agency, except that it may state that the platform is licensed within the State.

(h) A prediction market platform provider shall provide consumers with a readily accessible way to opt out of direct marketing. Upon a consumer's request, the prediction market platform provider shall cease sending them promotional material.

(i) No promotion may be advertised as "risk-free" or of similar language.

(j) If the prediction market platform provider offers bonuses, free credits, referral rewards, or other promotions to consumers, the terms and conditions of these offers must be described in plain language and shall be readily available to the consumer prior to the consumer accepting such bonuses, free credits, referral rewards, or other promotions.

(k) Where a prediction market platform provider uses affiliate marketers or third-party promoters to promote the prediction market platform provider's platform, the prediction market platform provider shall be responsible for ensuring such third parties also comply with the advertising standards required by this Section and are liable for noncompliance with the provisions of this Section.

(l) The Attorney General may adopt additional rules pertaining to advertising by prediction market providers.

Section 40. Restrictions on credit-based products and gift certificates.

(a) No prediction market platform provider or another, whether affiliated or otherwise, shall sell physical or digital gift certificates in relation to its platform.

(b) No prediction market platform provider shall permit a consumer to use a credit card or other credit-based product to add funds to such consumer's account or, in any way, wager on a prediction market.

Section 45. Restrictions on market making.

(a) A prediction market platform provider shall not offer a prediction market in the State if the market includes, as a liquidity provider or market maker, any person or entity who knowingly engages in gaming activities in the ordinary course of business, whether within or outside the State. This prohibition shall also apply to any affiliated entities, subsidiaries, parent companies, joint ventures, partnerships, agents, employees, or any entity acting at the direction of, in cooperation with, or for the financial benefit of such a person or entity.

(b) A prediction market provider shall not offer markets to residents where in such markets there is a contract or share of revenue with a person or entity who knowingly engages in gaming activities in the ordinary course of business, whether within or outside the State. This prohibition shall also apply to any affiliated entities, subsidiaries, parent companies, joint ventures, partnerships, agents, employees, or any entity acting at the direction of, in cooperation with, or for the financial benefit of such a person or entity.

Section 50. Certain contract provisions void.

(a) A prediction market platform provider's terms of service shall not alter or eliminate any right provided to a consumer under this Act.

(b) Any agreement that violates any provision of this Act shall be deemed void.

Section 55. Insider trading and market manipulation.

(a) A prediction market platform provider shall implement commercially reasonable and technically feasible measures to detect and prevent any fraudulent or manipulative conduct by participants or others. If the prediction market platform provider detects potential manipulation, insider trading, or fraud, it shall report it to the Attorney General and, if appropriate, to law enforcement.

(b) A person who engages in insider trading or market manipulation may be subject to penalties as prescribed by Section 20-70 of the Digital Assets and Consumer Protection Act.

Section 60. Penalties.

(a) A prediction market platform provider who violates a provision of this Act, or a rule or order adopted under this Act, shall be liable for a civil penalty not to exceed $10,000 for each violation. If the Attorney General determines that the prediction market platform provider has engaged in a persistent course of conduct in violation of this Act, the Attorney General may impose a civil penalty not to exceed $50,000 for each violation.

(b) If a prediction market platform provider violates the provisions of Section 15 or 45, the civil penalty shall be the greater of 2 times the profits derived from the market or $50,000.

(c) If the Attorney General believes from evidence satisfactory to the Attorney General that a prediction market platform provider has engaged in a persistent course of conduct in violation of this Act, the Attorney General may bring an action in the name and on behalf of the State in a court having jurisdiction to issue an injunction to enjoin and restrain the continuation of such violation. In such action, the court shall order the prediction market platform provider to cease operations in the State.

(d) If a prediction market platform provider continues to operate in the State after an order under subsection (c) is issued, the prediction market platform provider shall incur a civil penalty of $1,000,000 per day that the prediction market platform provider is operating in violation of the order.

(e) Nothing in this Act shall be construed to preclude criminal prosecution under any other law.

(f) The fact that a prediction market platform provider did not charge money or earn profit from activities in violation of this Section shall not be a defense to a violation of this Act.

(g) The remedies and penalties in this Act are cumulative. Imposition of a penalty under this Act does not preclude the Attorney General from taking any other action authorized for the same violation.

Section 65. Rulemaking authority. The Attorney General shall adopt rules as are necessary to implement and administer this Act.

Section 97. Severability. The provisions of this Act are severable under Section 1.31 of the Statute on Statutes.