Democrats push ‘Death Bets Act’ to ban prediction markets tied to war and fatalities
Democrats introduced the 'Death Bets Act' to explicitly ban prediction market contracts based on war, death, and assassination.Summary
Representatives Mike Levin and Senator Adam Schiff introduced the bicameral "Discouraging Exploitative Assassination, Tragedy, and Harm Betting in Event Trading Systems Act," or the "Death Bets Act," to explicitly ban prediction market contracts tied to death, war, and assassination, citing national security and ethical risks.
The proposed legislation aims to remove the Commodity Futures Trading Commission's (CFTC) discretion under the Commodity Exchange Act to allow such contracts, banning them outright. This move comes as the CFTC is preparing new guidance for event-based prediction markets. The effort is part of broader congressional scrutiny, including another bill aiming to prevent federal officials from profiting from these markets.
Public backlash has already led platforms like Polymarket to remove sensitive contracts, and concerns over insider trading were heightened after new wallets profited significantly just before U.S. airstrikes on Iran. Furthermore, prediction markets face ongoing legal instability, evidenced by a recent court ruling suggesting the Commodity Exchange Act may not preempt state gambling laws.
(Source：The Block)