Democrats Introduce Bill to Ban Prediction Market Contracts on War and Death
Two Democratic lawmakers, Rep. Mike Levin and Sen. Adam Schiff, introduced the DEATH BETS Act to ban prediction market contracts tied to war, assassination, terrorism, or individual deaths. The bill amends the Commodity Exchange Act to prohibit CFTC-registered entities from listing such contracts, removing the CFTC’s current discretion and mandating a permanent ban. The legislation responds to rising criticism of prediction markets enabling bets on geopolitical violence and deaths, including notable sums wagered on U.S. military actions and political assassinations. Critics argue these markets pose national security risks, incentivize violence, and enable profiteering from nonpublic information. Recent attention has focused on platforms like Polymarket, which has hosted controversial event contracts, and Kalshi, which faces a class action suit over a contract on Iran’s Supreme Leader. Concurrently, CFTC Chairman Michael Selig announced efforts to establish clearer regulations for event contracts, noting the increased relevance of prediction markets but also their potential for abuse. Legislators argue that clear legal prohibitions are needed to address these risks and curb exploitative betting practices on tragedies.
