Polymarket targeted as US lawmakers push to ban election gambling

A group of U.S. lawmakers, led by Oregon Senator Jeff Merkley, has called on the Commodity Futures Trading Commission to ban gambling on American elections.

The lawmakers, including Senators Richard Blumenthal, Chris Van Hollen, Elizabeth Warren, and Sheldon Whitehouse, along with Representatives Eleanor Holmes Norton, Jamie Raskin, and John Sarbanes, expressed concern that allowing betting markets on elections could undermine public trust in democracy.

In a letter to CFTC Chairman Rostin Behnam, the legislators supported a proposed rule that would prohibit event contracts related to U.S. election outcomes. 

“The last thing that voters heading to the polls need are bets waged on the outcome of that election. Voters need action, as proposed by the CFTC in this rule, to restore trust,” the lawmakers wrote. “Elections are not a for-profit enterprise. Without this rule, voters will wonder if their vote mattered, and the whether the outcome of the election was influenced by big money bets.”

The lawmakers argued that such betting markets could lead to corruption, influence election results, and erode voter confidence. They emphasized that elections are not-for-profit enterprises and stressed the importance of preventing the commodification of the democratic process. 

The letter warned that allowing large wagers from wealthy individuals and corporations could undermine the integrity of the electoral process.

“Election gambling fundamentally cheapens the sanctity of our democratic process. Political bets change the motivations behind each vote, replacing political convictions with financial calculations,” the letter wrote. “Allowing billionaires to wager extraordinary bets while simultaneously contributing to a specific candidate or party, and political insiders to bet on elections using non-public information, will further degrade public trust in the electoral process.”

The lawmakers urged the CFTC to finalize and implement the rule swiftly.

Polymarket 

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

Users buy shares using USD coin (USDC) and trade on outcomes of events like elections, sports, and crypto prices. Shares’ values fluctuate based on market sentiment, offering a new trading experience.

In July, Polymarket saw significant growth with over 1.5 million bets and a total trading volume exceeding $1 billion, fueled by the U.S. presidential election debate. Data shows a 57% chance for Trump to win, attracting $54 million in bets, while Harris holds a 39% chance with $38.5 million.