Support the BETS OFF Act to Regulate Prediction Markets

The use of online gambling and prediction markets on platforms like Kalshi and Polymarket has been on the rise over the last year, leading to problematic betting on political issues like elections, assassinations, and acts of war. There is currently no federal recourse against government officials betting in these prediction markets, leading to concerns about insider trading and the manipulation of politics for personal profit. Lawmakers have introduced the Banning Event Trading on Sensitive Operations and Federal Functions, the BETS OFF Act, to prevent wagering on events “where an individual knows or controls the outcome” and to legislate other common sense restrictions on the prediction market.

While prediction market platforms have existed for some time, they have been less regulated under the Trump administration. Political betting on these platforms garnered mainstream attention with wagers placed on the illegal war in Iran, including when two US pilots might be rescued posted shortly after their plane was shot down in Iran. CNN found that one Polymarket user has made nearly $1 million by winning 93% of their five-figure wagers about unannounced military operations in Iran, leading many to consider this user a political or military official with control over or foreknowledge about these decisions.

While some prediction market platforms have established some guardrails against insider trading and political gambling, they are still essentially self-regulated platforms, making them “ripe for rigging”. The bicameral BETS OFF Act would not only prevent those with insider political information from placing bets on policy decisions and political events, but it would also amend existing laws to enforce rules against illegal gambling on these platforms on the federal level.

Call your representative and tell them to support the BETS OFF Act to regulate betting on prediction market platforms and stop insider trading.