New Jersey Senator Nicholas Scutari introduced S4447 this week, which proposes regulations for the emerging industry. It would also restrict who can use the controversial platforms, especially for government employees. 

The goal is to bring operators offering sports contracts into the New Jersey sports betting market. This would help the state better protect bettors while also increasing tax revenue. 

The proposal makes it clear that while prediction markets are legally classified as commodity trading, they qualify as gambling under state law.

“While gambling may take many forms and be carried out by varying methods, the basic principle remains that when individuals are staking money on a game of chance or on the outcome of an event over which they have no control, that constitutes gambling,” the bill reads.

The bill is expected to have ample support, but the state’s ability to enforce the proposed regulations remains in question. While many states have been attempting to wrest control of the industry away from the Commodity Futures Trading Commission, they’ve yet to succeed.

The New Jersey Senate Budget & Appropriations Committee is currently reviewing S4447.