Senate Bill S9103

                                 
BILL NUMBER: S9103

SPONSOR: SEPULVEDA
 
TITLE OF BILL:

An act to amend the racing, pari-mutuel wagering and breeding law, in
relation to prohibiting gambling on elections

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would prohibit gambling on the outcome of political elections.

 
SUMMARY OF PROVISIONS:

Section 1 adds a new section 912 to the racing, pari-mutuel wagering and
breeding law which prohibits gambling, as defined by section 225.00 of
the penal law, on the result of any political election.

Section 2 sets this act to take effect immediately.

 
JUSTIFICATION:
              

In recent years, there has been explosive growth in the popularity of
prediction markets. These markets allow traders to bet on specific
outcomes of an event from the comfort of their home, using nothing but
their phone. Through these platforms, individuals can bet on nearly
anything: the duration of the national anthem before a Knicks game, the
winner of Best Actor, the fall of a foreign regime, or the outcome of
the presidential election.

This practice, if unchecked, poses real risks to the integrity of the
democratic process. By prohibiting gambling on the outcome of any poli-
tical election, this bill would help safeguard election integrity and
preserve New Yorkers' trust in the polls. At a time when individuals and
administrations are actively attempting to undermine confidence in demo-
cratic institutions, preserving election integrity and fostering public
trust is critically important.

This bill also addresses the risk that the line between betting odds and
empirically supported polling data may become blurred, fostering further
distrust in polls, and even in our elections themselves.  Election polls
are based on verifiable, reviewed data, whereas gambling odds may hinge
on a variety of unrelated factors, such as the amount of money being
wagered by one individual or sudden influxes of bets. While betting odds
may appear similar to probability, they are starkly different measures.
Betting odds simply reflect how money is being wagered, but this can
easily be confused for a prediction of outcome likelihood, which creates
serious risk of confusion and distrust in reliable data in the long
term. This bill would curb that risk, ensuring that election information
is based on verifiable data and not skewed or manipulated by gambling
odds.

 
PRIOR LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:

None.
 
EFFECTIVE DATE:
This act shall take effect immediately.