Polymarket targeted as US lawmakers push to ban election gambling

A group of US lawmakers led by Oregon Senator Jeff Merkley has called on the Commodity Futures Trading Commission to ban betting on American elections.

Lawmakers including Senators Richard Blumenthal, Chris Van Hollen, Elizabeth Warren and Sheldon Whitehouse and Representatives Eleanor Holmes Norton, Jamie Raskin and John Sarbanes have expressed concern that allowing election betting markets could undermine public trust in democracy.

In a letter to CFTC Chairman Rostin Behnam, lawmakers backed a proposed rule that would ban contracts for events related to U.S. election results.

“The last thing voters need to get to the polls is betting on the outcome of that election. Voters must take action to restore trust, as the CFTC proposes in this rule,” the lawmakers wrote. “Elections are not for-profit enterprises. Without this rule, voters will wonder if their votes mattered and if the outcome of the election was influenced by big-money bets.”

Lawmakers have argued that such betting markets can lead to corruption, influence election outcomes and erode voter confidence. They have stressed that elections are not-for-profit enterprises and stressed the importance of preventing the commodification of the democratic process.

Allowing wealthy individuals and corporations to place large bets could undermine the integrity of the electoral process, the letter warned.

“Election gambling fundamentally cheapens the sanctity of our democratic process. Political betting replaces political beliefs with financial calculations, changing the motivations behind every vote,” the letter reads. “Allowing billionaires to place extraordinary wagers while simultaneously contributing to a specific candidate or party, and political insiders to bet on elections using nonpublic information, will further diminish public trust in the electoral process.”

Lawmakers called on the CFTC to quickly finalize and implement the rule.

Very market

A perfect example of a gambling tool for this letter is Polymarket. Polymarket is a prediction market on the Polygon blockchain that has gained popularity due to its transparency and variety of betting options.

Users buy stocks using USD coin (USDC) and trade based on the outcome of events like elections, sports, and crypto prices. The value of stocks fluctuates based on market sentiment, offering a new trading experience.

In July, Polymarket saw significant growth, with over 1.5 million bets and total trading volume exceeding $1 billion, driven by the US presidential election debate. The data shows Trump has a 57% chance of winning, drawing $54 million in bets, while Harris has a 39% chance and $38.5 million.