The Iowa Senate has signed off on a bill that would bring new rules and taxes to a fast-expanding corner of finance often called prediction markets. Lawmakers approved Senate File 2470 on Tuesday (March 31), making it the first time a state legislative chamber has moved to formally regulate this type of trading. The proposal lays out a structure for companies offering what it calls event-driven contracts. These are financial products that pay out based on whether a specific future event happens or not. The bill spells out a wide range of qualifying events, including sports contests, lotteries, elections, legislative decisions, and key economic data points. NEW: Iowa Senate passes bill regulating #PredictionMarkets , adding taxes and permits. The measure now moves to the House for debate. @RWW pic.twitter.com/wC4sotj63C — Suswati Basu (@suswatibasu) April 1, 2026 Under the measure, companies would need a state-issued permit before operating in Iowa.…