New York Targets Prediction Markets Amid NHL Partnership with Polymarket

New York lawmakers reintroduced legislation on Wednesday to restrict prediction markets, aiming to ban bets on death, individual athletic events, and player performance. The ORACLE Act, introduced earlier in November, would limit event contracts on specific games like the Rangers vs. Buffalo Sabers matchup. Despite the restrictions, the legislation still permits bets on tournaments, like who will win the Stanley Cup.

Polymarket, a prominent player in the prediction market space, recently secured a partnership with the New York Rangers, becoming the team's exclusive prediction markets partner. This partnership includes displaying odds during games at Madison Square Garden, featuring branding on the rink's perimeter, and incorporating Polymarket into a post-game segment. The collaboration highlights the growing influence of prediction markets in traditional sports betting.

Under the ORACLE Act, prediction markets would be required to implement voluntary self-banning and time-limit features, enforce age restrictions, and prohibit the use of credit cards for betting. Non-compliance would result in daily fines of $1 million for operating without a court order, while other violations could carry penalties as low as $10,000.

Why Did This Happen?

The legislation reflects growing concerns among lawmakers about the potential misuse of prediction markets, particularly in sports betting. Advocates of such markets argue they provide more accurate forecasts than expert opinions or polls by leveraging the 'wisdom of the crowd.' However, critics point out that these platforms often lack consumer protections and can blur the line between forecasting and gambling.

The reintroduction of the ORACLE Act follows a broader regulatory trend. In April, similar legislation was proposed to study blockchain's role in protecting voter records, and in early January, U.S. Rep. Ritchie Torres introduced a bill to restrict federal employees from using prediction markets with insider knowledge.

How Did Markets React?

Prediction markets have already become a significant economic force. In 2025, sports betting accounted for 37% of Polymarket's notional trading volume and 93% for Kalshi, which operates prediction markets for Coinbase and Robinhood. Combined, these platforms saw $2.3 billion in notional volume.

The new partnership with the Rangers demonstrates the commercial viability of prediction markets. Polymarket's branding will appear on LED signs, rink perimeter signage, and the exterior of Madison Square Garden, signaling a deep integration of prediction markets into live sports events.

What Are Analysts Watching Next?

Regulators and investors are closely monitoring how the ORACLE Act will affect the broader prediction market ecosystem. The legislation could set a precedent for how states regulate similar platforms, especially as prediction markets expand into political and catastrophic event forecasting. Critics argue that banning bets on individual games may limit the markets' utility but not their underlying value in forecasting outcomes.

The debate over prediction markets is not limited to New York. With the rise of blockchain-based platforms, lawmakers are increasingly seeking to balance innovation with consumer protections. As the ORACLE Act moves forward, its impact on the market structure and user behavior will likely be a key focus for both industry participants and regulators.