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Political Betting Booms Past $200 Million, Triggering Fresh Scrutiny

Lawmakers target insider risks with proposed bans on government bettors.

Overview

  • Polymarket activity has swelled to more than $90 million from roughly 370,000 users, while rival Kalshi says about $129 million is staked on politics and it bars wagers on direct military action.
  • New York Representative Ritchie Torres introduced legislation to prohibit government employees from betting on events they could influence, citing corruption risks similar to insider trading.
  • A widely reported Polymarket windfall of more than $400,000 on a bet that Nicolás Maduro would be ousted intensified questions about the use of nonpublic information.
  • Legal experts warn that wagering on geopolitical violence may run afoul of the 1936 Commodity Exchange Act, which restricts contracts linked to terrorism, assassination, war or illegal acts.
  • Access to Polymarket is blocked in more than 30 countries, including the United States, the United Kingdom, Australia, France, Italy and Ukraine.