This bill, titled the "Prediction Markets Security and Integrity Act of 2026," aims to regulate online prediction markets by classifying their services as substantially similar to betting and gambling. Congress finds that these markets have offered unregulated gambling services, leading to harms such as insider trading, manipulation of outcomes, misuse of sensitive information, and addictive features that harm bettors' well-being, including underage individuals. The legislation prohibits online prediction markets from operating in a state unless that state has an Attorney General-approved wagering program. States must submit applications detailing their regulatory entities and laws, which are then reviewed against comprehensive federal standards. These programs are valid for three years and require renewal, with provisions for emergency revocation if standards are not met. Key consumer protections include a minimum wagering age of 21, mandatory state and national self-exclusion lists, and strict rules against predatory tactics like reload bonuses and VIP programs. Operators must provide clear disclosures on restrictions, bonus terms, and actual odds, and offer opportunities to cancel wagers. The bill also mandates affordability checks for large deposits and prohibits the use of credit cards for wagering. To ensure market integrity, the bill forbids insider trading, manipulation, and fraudulent listings, particularly those related to war, military action, or death. It prohibits proposition bets on amateur or intercollegiate sports and wagers on sporting events after they have commenced. Online prediction markets are also restricted from using artificial intelligence to track individual wagers, create targeted promotions, or develop new gambling products like microbets. Advertising for online prediction markets faces significant restrictions, including requirements to disclose identity and provide gambling addiction resources. Advertisements cannot target problem gamblers or minors, nor can they be broadcast during certain hours or sporting events. They are also prohibited from using terms like "bonus" or providing information on how to place wagers. State wagering programs must include licensing requirements for online prediction market operators, involving thorough background checks for suitability and annual criminal history checks for employees. Operators are required to maintain detailed records of wagers and customer data, ensure data security, and share anonymized wagering data with state regulators and the Attorney General in real-time. They must also report suspicious transactions to state regulatory entities and relevant sports organizations. The Attorney General is empowered to bring civil actions for injunctive relief and impose criminal penalties for violations, while state attorneys general can also bring civil actions on behalf of their residents. The bill amends the Commodity Exchange Act to prohibit online prediction markets from listing event contracts. Importantly, it explicitly states that nothing in the Act preempts or limits a state's or Indian Tribe's authority to enact more stringent regulations or even prohibit online prediction markets entirely.