No prediction market bets on sports, election, war under new bill
CNBC • • business
Key Points:
- A group of congressional Democrats, led by Sens. Jeff Merkley and Elizabeth Warren and Rep. Jamie Raskin, introduced legislation to ban prediction market bets on elections, government actions, war, and sports amid growing scrutiny of platforms like Kalshi and Polymarket.
- The bill aims to prevent potential corruption and erosion of public trust by restricting well-timed bets on government decisions and military actions, restoring the original intent of prediction markets and shifting gambling regulation back to the states.
- Other related proposals include bipartisan efforts to ban sports prediction market contracts and to bar members of Congress and executive officials from trading in certain prediction markets to avoid conflicts of interest.
- Kalshi and Polymarket have introduced new insider trading protections recently, with Kalshi stating it does not allow markets related to war or death, but both platforms have not commented on the latest legislation.
- The bill also mandates a Government Accountability Office study on prediction markets and insider trading, while over 20 lawsuits argue these markets exploit gambling loopholes and should be regulated at the state level.
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