BETS OFF Act targets controversial political prediction markets

"These are fundamentally corrupt markets. They are rife with insider trading, and they offer incredibly perverse incentives, especially inside the government, for government actors to push official decision-making towards their financial interests."

"There was a series of very specific bets that were made... on the United States attacking Iran the following day. Those bets paid off to t"

Senator Chris Murphy and Representative Greg Casar introduced legislation to restrict prediction markets from offering bets on geopolitical developments, government actions, and real-world events. The BETS OFF Act targets platforms like Polymarket and Kalshi, which allow wagering on outcomes that government officials or insiders could influence or predict. Lawmakers argue these markets create corrupt incentives and enable insider trading, particularly within government where officials might manipulate decisions for financial gain. Murphy cited suspicious betting activity preceding U.S. military strikes against Iran as evidence of the problem, noting unusually large wagers placed the day before the attacks occurred.

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