WASHINGTON (Gray DC) – Democratic lawmakers are pushing legislation to restrict online prediction markets, citing concerns about manipulation and potential insider trading tied to government actions.
On Tuesday, Sen. Chris Murphy (D-Conn.) and Rep. Greg Casar (D-Texas) introduced the \u201cBets Off Act,\u201d which would ban wagers on events where participants already know the outcome, including events controlled by a single actor.
The push follows reports of large bets placed ahead of a U.S. war with Iran, with some accounts cashing out for hundreds of thousands of dollars. Sen. Murphy alleged people connected to the White House may be involved.
\u201cThey are inside Trump\u2019s White House giving advice to the president not based on what\u2019s best for national security but based upon what will make them money. That is unforgivable,\u201d Murphy said.
Casar pointed to the broader reach of platforms like Polymarket and Kalshi, which have grown in popularity.
\u201cFrom the Super Bowl halftime show to the length of White House press conferences, people are allowed to bet on events where someone else already knows and already controls the outcome,\u201d Casar said.
The Trump administration has thrown its support behind prediction markets as they face state-level challenges. Members of the Trump family are also reportedly invested in at least one of the major platforms.
Casar said the goal of the legislation is to prevent insider trading and potential harm to everyday Americans.
\u201cThe people at the very top are making money off of it. They want to go further, where the entire country is a casino and the rich and powerful always win. Congress must act before we get there,\u201d Casar said.
Some Republican lawmakers have acknowledged a need for regulation, though not in the form proposed by Murphy and Casar.
\u201cYeah, there needs to be some regulations. We can\u2019t let it just run wild,\u201d said Sen. Tommy Tuberville (R-Ala.). \u201cAnything Senator Murphy [is] for I\u2019m usually not for because he\u2019s not for America.\u201d
The bill is part of a broader Democratic push to regulate prediction markets. With Republicans in control of Congress, the path forward on the proposals remains unclear.
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