Pennsylvania Regulators Just Raised Youth Gambling Concerns About Prediction Markets — What It Could Mean for Access

Pennsylvania regulators are taking their concerns about prediction markets directly to the federal government — and this time, the focus is not just on who has legal authority over these platforms. It is about the teenagers and young adults who can access them with virtually no guardrails in place.

What the PGCB Told the CFTC

The Pennsylvania Gaming Control Board (PGCB) submitted formal public comments to the Commodity Futures Trading Commission (CFTC) ahead of the agency publishing proposed regulations on prediction markets. The submission, authored by PGCB Executive Director Kevin F. O’Toole, argues that prediction market platforms have created a dangerous loophole for underage gambling — one that the CFTC has largely ignored.

In his letter to CFTC Secretary Christopher Kirkpatrick, O’Toole did not mince words: “By allowing Designated Contract Markets to masquerade as unregulated sportsbooks, the Commission has abandoned its historical mandate, ignored its own regulations, and actively endangered a highly vulnerable demographic of young adults.”

Platforms like Kalshi allow users as young as 18 to buy contracts on the outcome of sporting events, political races, pop culture moments, and more. In Pennsylvania, where the legal gambling age is 21, that three-year gap represents a significant consumer protection concern. O’Toole points out that the CFTC’s regulations were never designed with retail gamblers in mind — they were built for sophisticated institutional investors navigating financial derivatives markets, not teenagers placing a bet on whether a particular team wins on a Wednesday night.

Why This Is Different From the Jurisdictional Fight

Most of the debate around prediction markets has centered on a legal tug-of-war: are these financial instruments under federal oversight, or are they gambling products subject to state law? States like New Jersey have taken an aggressive stance and issued cease-and-desist letters to prediction market operators. Pennsylvania has not gone that far yet, but the PGCB’s comments to the CFTC signal a clear escalation in the state’s position.

What makes O’Toole’s submission notable is that he spends the bulk of his argument not on jurisdictional authority but on youth gambling harm. He cites research showing that gambling addiction is significantly more prevalent among younger populations, particularly those wagering on sports, and references a Futurism magazine article noting that prediction markets have “perfected a wildly addictive formula specifically effective among young, inexperienced bettors.” The appeal, as that piece described it, comes from binary simplicity: either the thing happens or it doesn’t.

Licensed Pennsylvania sports betting operators are required by law to verify a bettor’s age and identity before allowing any wagering activity. They must integrate with the state’s self-exclusion list, display problem gambling resources like the 1-800-GAMBLER helpline, and allow users to set deposit limits, loss limits, and session time reminders. Prediction markets operating under CFTC oversight are not held to any of these standards.

What It Means If You Bet in Pennsylvania

If you use a licensed sportsbook in Pennsylvania, you already operate within a framework that was built with consumer protection in mind. Your age was verified, your account is subject to dispute resolution through the PGCB, and you have access to responsible gaming tools that operators are legally required to provide. That system works because it took years to build and has real enforcement behind it.

The PGCB’s concern is that prediction markets sidestep all of that. They are self-certified by private entities as compliant with federal law, meaning no state agency reviews their practices before they become available to consumers. If you are on a prediction market platform and something goes wrong — a disputed outcome, a billing error, a problem gambling situation — you may have no clear path for recourse under Pennsylvania law.

O’Toole’s comments also highlight that the PGCB is separately running a public awareness campaign called “What’s Really at Stake,” which focuses on the consequences of underage gambling and specifically calls out easy access to prediction market sites alongside illegal offshore platforms.

What Comes Next

The CFTC is in the process of developing formal regulations for prediction markets, which is what prompted the PGCB’s comments in the first place. Pennsylvania’s legislature has also shown growing interest in the issue — the House Gaming Oversight Committee held an informational hearing on prediction markets in December 2025, though no legislation has been proposed yet.

For bettors across the country, the outcome of this regulatory process could determine whether prediction markets remain widely available at age 18, get pushed toward the 21-and-over threshold that most state sportsbooks require, or face outright restrictions on sports-related contracts. If you want to understand the legal sports betting landscape in your state, the state-by-state sports betting guide is a useful starting point.

Pennsylvania’s message to the CFTC is straightforward: just because you can authorize these markets does not mean you should. At least not without the same age verification and consumer protections that state-regulated sportsbooks have been required to follow for years.