COLUMBUS, OH. (WOWO) A new proposal in the Ohio Statehouse would prohibit public officials and government employees from participating in prediction markets, according to legislation introduced this month.
The Lead Off
- Ohio House Bill 887 would ban public employees from using prediction market platforms
- The measure targets concerns over conflicts of interest involving government information
- Violations could result in misdemeanor charges and fines up to $10,000 per violation
Proposal introduced in Ohio House
Rep. Sean Brennan, a Democrat from Parma, introduced House Bill 887, known as the “Ohio Public Employee Event-Wagering Ethics Act.”
The proposal would amend Ohio ethics law to prohibit state and local public officials and employees from maintaining accounts on prediction market platforms or engaging in trading event-based contracts.
The bill defines “event contracts” as financial instruments that pay out based on the outcome of specific events, while “prediction markets” are systems where users can buy, sell, or trade those contracts. Licensed sports gaming already regulated under Ohio law would be excluded.
Ethics concerns cited by sponsor
Brennan said the measure is intended to address potential ethical risks tied to emerging financial technologies and government employment.
“Ohioans deserve confidence that public officials and state employees are acting solely in the public interest,” Brennan said. “As these new wagering platforms rapidly expand, we must ensure that public servants are not placed in situations where access to government information or influence over public policy could create real or perceived conflicts of interest.”
Under the proposal, officials would be barred from directly or indirectly participating in prediction market trading or assisting others in doing so. The bill also prohibits the use of confidential government information for trading purposes.
Additional restrictions and covered agencies
The legislation would impose stricter rules on statewide elected officials and employees in regulatory or policymaking agencies.
Agencies covered under the bill include:
- Ohio Casino Control Commission
- Ohio Ethics Commission
- Ohio Department of Commerce
- Legislative agencies and other state bodies involved in regulation or enforcement
The bill would also prohibit certain officials from holding financial interests in companies operating prediction markets or receiving compensation from them.
Enforcement and penalties
If passed, violations of the law would be classified as first-degree misdemeanors.
Penalties could include fines of up to $10,000 per violation, along with court-ordered repayment of investigative and prosecution costs.
Enforcement authority would be granted to the Ohio Ethics Commission.
Growing attention on prediction markets
Supporters of the proposal say prediction markets have expanded rapidly in the United States, drawing increased scrutiny from lawmakers and regulators over issues involving financial oversight and potential conflicts of interest.
Some platforms allow users to trade contracts tied to election outcomes, economic indicators, and policy decisions.
Brennan said the legislation is not intended to target traditional sports betting markets.
“This legislation is about preserving integrity in government and staying ahead of emerging technologies and financial platforms that create new ethical concerns,” Brennan said.
Next steps in the legislative process
House Bill 887 will be assigned to a committee in the Ohio House of Representatives, where it is expected to receive hearings and public testimony before advancing further in the legislative process.
The Takeaway
- Ohio lawmakers are considering House Bill 887, which would ban public officials and government employees from using prediction market platforms tied to event-based financial contracts.
- The proposal is aimed at preventing conflicts of interest and misuse of confidential government information, according to sponsor Rep. Sean Brennan, and would include strict restrictions on participation and financial ties.
- If enacted, violations would be treated as first-degree misdemeanors with fines up to $10,000 per violation, and the bill will now move to committee hearings for further debate.
