In brief
- Sen. Chris Murphy (D-CT) and Rep. Greg Casar (D-TX) introduced the BETS OFF Act on Tuesday, a bill that seeks to outlaw prediction markets focused on war and other specific topics.
- Under the legislation, wagers associated with pre-determined outcomes like the Super Bowl halftime show and Academy Awards would also be outlawed.
- The lawmakers claimed that people close to the White House are profiting off of insider knowledge tied to military actions.
Democratic lawmakers introduced legislation on Tuesday prohibiting prediction markets that hinge on government action or certain predetermined outcomes, arguing such wagers are turning America into a casino where the rich and powerful always win.
During a press conference, Sen. Chris Murphy (D-CT) and Rep. Greg Casar (D-TX) focused their criticism on the White House, claiming that President Donald Trump’s family and friends have profited off of bets tied to military actions in the Middle East.
Murphy called out wagers that foresaw the U.S. striking Iran weeks ago, suggesting their lucrative timing on Polymarket was informed by people tied to the Trump administration. He noted that the bets were placed by accounts that popped up the day the wagers were made.
“People inside the White House or very close to the White House, with knowledge of the attack that was imminent, cashed in,” Murphy said. “That is fundamentally corrupt.”
Although the lawmakers didn’t link traders’ identities to specific individuals, they described the activity as a continuation of an increasingly alarming pattern, considering that the arrest of former Venezuelan leader Nicolas Maduro drew suspicious bets as well.
Decrypt has reached out to the White House for comment.
Under the Banning Event Trading on Sensitive Operations and Federal Functions Act, or BETS OFF Act, prediction markets tied to terrorism, assassinations, and war would be banned. The bill’s text includes restrictions on both users and those that “facilitate” the wagers, suggesting prediction market operators could be precluded from supporting them outside the U.S.
Decrypt has reached out to Murphy’s office for clarification.
The legislation also seeks to prevent wagers on “any event that is not financial, commercial, or economic” if the outcome stems from government action, is known in advance, or is controlled completely by an individual. As an example, a one-pager for the bill references prediction markets on the Super Bowl Halftime show or Academy Awards as being precluded.
Casar argued that the proliferation of prediction markets under Trump invites danger, with the potential for financial incentives to pervert decision-making within the West Wing.
“We shouldn’t live in a country where government officials or well-connected people can make money off of secret information that is supposed to be used in the public interest,” he said. “We shouldn’t live in a country where a foreign power can guess what Donald Trump is going to do next by going to a betting market.”
The BETS OFF Act’s introduction comes as lawmakers push various bills that aim to rein in prediction markets. Last week, Rep. Mike Levin (D-CA) and Sen. Adam Schiff (D-CA) unveiled the DEATH BETS Act, which seeks to ban war-related prediction markets as well.
Since Trump’s second term began, Murphy has been an outspoken critic of crypto ventures that the president has endorsed, including President Trump’s own official meme coin. Last year, the senator introduced legislation to prevent politicians from promoting digital assets in office.
On Tuesday, Casar vocalized concerns that Truth Social’s parent company, Trump Media & Technology Group, is developing its own prediction market, calling it “Trump’s very own corruption machine.”
“Needless to say, I don’t think this administration is going to be cracking down on this form of corruption anytime soon, since they’re cashing in on it,” he added. “The potential for corruption in these markets goes well beyond wars, and so does our bill.”
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