Following intense criticism, Polymarket has taken down a market that allowed users to bet on the rescue of US service members in Iran. The market, which was tied to the rescue of two airmen after an F-15E fighter jet was shot down over Iran, sparked outrage among lawmakers, with Rep. Seth Moulton calling it 'disgusting' and arguing that it turned a military rescue effort into a financial transaction.
The market's removal comes as prediction markets face growing regulatory pressure, with a group of congressional Democrats introducing legislation to ban contracts related to elections, war, and government actions. The incident has also prompted Polymarket to review its internal safeguards, with a spokesperson stating that the listing did not meet the company's integrity standards.
The Commodity Futures Trading Commission has also filed lawsuits against three states over efforts to bypass federal oversight of prediction markets, while the NFL has asked operators to avoid offering contracts that could be deemed objectionable or open to manipulation. Despite the scrutiny, the prediction market is expanding, with Kalshi securing a license to offer margin trading to institutional investors and JPMorgan considering entering the market.