US Senate Bans Members from Prediction Market Betting

The United States Senate has unanimously approved a measure preventing its members, staff and officials from participating in prediction markets, platforms where users place wagers on future events, including political and geopolitical outcomes.

The decision follows growing concern that such activity could enable the misuse of non-public information. Lawmakers have raised alarms that betting on sensitive topics such as military actions or government decisions could present both ethical issues and national security risks. Elissa Slotkin highlighted the potential dangers, warning that insider trading on these platforms represents an operational risk.

The resolution was introduced by Bernie Moreno, who stressed that public office should not be used for financial gain. The rule change takes effect immediately and applies to all Senate personnel.

The move follows a series of cases that intensified scrutiny around prediction markets. Authorities identified accounts that generated significant profits by correctly anticipating geopolitical developments shortly before they occurred. In another instance, a U.S. Army soldier was charged with using classified information to profit from bets placed on a prediction platform.

These developments prompted lawmakers to act, with Senate leaders emphasising the need to preserve trust in public institutions. Officials have also encouraged similar restrictions to be adopted across other branches of government.

Further proposals are already under discussion. John Curtis has joined efforts with other lawmakers to extend the prohibition to all government officials, including executive branch figures. Under proposed legislation, violations could result in financial penalties tied to profits made from such activity.

Prediction market operators themselves have acknowledged the risks. Platforms such as Kalshi and Polymarket have introduced measures to limit insider trading and restrict access for individuals with potential influence over outcomes. Both companies have expressed support for the Senate’s decision.

The ban reflects broader regulatory pressure on prediction markets, which are facing increased scrutiny as their popularity grows and concerns over transparency and integrity continue to emerge.