US lawmakers are moving to prohibit prediction markets from offering contracts tied to war, assassination, terrorism or someone’s death.
Senator Adam Schiff says he is introducing legislation aimed at banning so-called “death bets” on prediction market platforms.
“Betting on war and death creates an environment in which insiders can profit off of nonpublic information, our national security is jeopardized, and violence is encouraged. Congress must act.”
The proposal, known as the DEATH BETS Act, would prohibit any exchange registered with the Commodity Futures Trading Commission from listing contracts that reference or relate to terrorism, assassination, war, or an individual’s death.
Representative Mike Levin is introducing companion legislation in the House of Representatives.
Supporters of the bill argue that existing law gives regulators the authority to block such contracts if they are deemed contrary to the public interest, but leaves too much discretion to the CFTC.
The new legislation would explicitly ban these markets altogether.
Lawmakers say the move comes after prediction platforms listed controversial contracts tied to geopolitical events and political leadership changes.
One example cited by Schiff’s office involved a market speculating on whether Iran’s Supreme Leader would be removed from power, which reportedly generated tens of millions of dollars in trading volume before being halted.
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