Following intense criticism, Polymarket has taken down a market that allowed users to bet on the rescue of US service members in Iran. The move comes after lawmakers, including Rep. Seth Moulton, denounced the market as 'disgusting' and argued that it turned a military rescue effort into a financial transaction.
Moulton has been a vocal critic of prediction markets, recently prohibiting his staff from using platforms like Polymarket and Kalshi due to concerns that financial incentives could influence policy decisions. A Polymarket spokesperson stated that the listing did not meet the company's integrity standards and was removed shortly after its appearance. The incident highlights the growing regulatory pressure on prediction markets, with congressional Democrats introducing legislation to ban contracts tied to elections, war, and government actions. Additionally, several senators have urged the Commodity Futures Trading Commission to prohibit markets linked to individual deaths, citing national security concerns.
The CFTC has also filed lawsuits against three states over efforts to bypass federal oversight of prediction markets. While the industry faces increased scrutiny, it continues to expand, with Kalshi securing a license to offer margin trading to institutional investors and new players, such as JPMorgan, entering the market.