- US lawmakers introduced the BETS OFF Act to ban betting on sensitive government operations, alleging insider trading on prediction markets.
- The legislation follows concerns that individuals with classified information reportedly profited from bets on potential US-Iran conflict outcomes.
- Platforms like Polymarket continue to host contracts on geopolitical events, sparking controversy over their ethical implications.
- A military correspondent reportedly received death threats over a report linked to a Polymarket prediction resolution.
Two Democratic US lawmakers, Texas Representative Greg Casar and Connecticut Senator Chris Murphy, introduced legislation on Tuesday to combat alleged government corruption linked to prediction market betting. They specifically cited “highly unusual bets” placed on the platform Polymarket regarding a potential US-Israel war with Iran.
Senator Murphy suggested on March 4 that individuals with “inside information” about former President Donald Trump’s plans may have placed these bets. Representative Casar argued that decisions about war and peace should never be influenced by personal financial stakes, stating “We shouldn’t live in a country where someone… could be driven by the fact that they have hundreds of thousands of dollars riding on the decision”.
Consequently, the proposed Banning Event Trading on Sensitive Operations and Federal Functions (BETS OFF) Act represents a direct regulatory response. This follows a separate legislative effort last week, when Senator Adam Schiff introduced the DEATH BETS Act to prohibit certain death-related contracts.
Meanwhile, Polymarket maintained active betting markets tied to the Iran conflict as of Tuesday, including on the deployment of US ground forces. The platform defended its markets in a note, stating “The promise of prediction markets is to harness the wisdom of the crowd to create accurate, unbiased forecasts.”
However, the controversy escalated when a Times of Israel correspondent received death threats over a report on an Iranian missile strike date, allegedly to resolve a Polymarket prediction. This incident highlights the volatile intersection of real-world events and speculative markets, fueling the legislative push for tighter controls.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
