Lawmakers Introduce Bill to Regulate Prediction Markets in US

US Lawmakers Introduce Legislation to Regulate Prediction Markets

Two US lawmakers, Senator Chris Murphy and Representative Greg Casar, have announced plans to introduce legislation aimed at regulating prediction markets. The proposed BETS OFF Act would prohibit wagers on “government actions, terrorism, war, assassination, and events where an individual knows or controls the outcome”.

The bill’s sponsors argue that certain events should not be monetized by prediction markets, citing concerns about insider knowledge and potential influence on government decisions. According to Murphy, the legislation is intended to prevent bets made based on sensitive information.

Critics have pointed to trends on online betting platforms, such as Polymarket and Kalshi, where users have placed large wagers on upcoming events, including military strikes and economic policy changes. For example, in the hours leading up to a recent US-Israeli attack on Iran, 150 new accounts appeared on Polymarket, with one user making over $500,000 on a bet related to Ayatollah Ali Khamenei’s status.

The lawmakers’ office has stated that they have evidence suggesting that government officials or individuals close to the administration may have made bets on these events. However, the White House has denied any involvement in high-stakes betting.

The proposed legislation comes as part of a broader effort to regulate prediction market platforms and prevent potential abuses. The BETS OFF Act would prohibit wagers on sensitive topics and ensure that users do not have access to insider information.

Source: Al Jazeera