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New Jersey lawmakers plan to revisit 9% prediction market surtax

Regulation

New Jersey lawmakers are expected to revisit a proposed 9% surtax on prediction markets when the legislature returns in the fall, after the bills stalled before floor votes. Assembly Speaker Craig Coughlin said lawmakers would review concerns that Senate amendments could extend the measure beyond prediction markets; the state estimated the tax could raise $10.3 million to $15.3 million in the current fiscal year.

The proposal could change prediction-market operators’ tax exposure in New Jersey if lawmakers pass it.

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Regulation

CFTC gives prediction markets 30 days to address state access blocks

The CFTC issued guidance saying state-based geographic restrictions generally conflict with impartial-access requirements for designated contract markets in the United States. It gave exchanges 30 days to remove conflicting blocks or explain to the Division of Market Oversight, with supporting evidence, why compliance is not feasible. The same framework applies to intermediaries and other entities providing market access.

The CFTC said state-based geographic restrictions on prediction markets are generally inconsistent with its impartial access rules, and gave operators and exchanges 30 days to lift them or explain why they cannot. The agency issued the guidance on Thursday as a formal interpretation of its impartial access requirements for designated contract markets. It said location alone should not be used to deny access to eligible participants within the United States.

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