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, including Rep. Seth Moulton, who called it 'disgusting' and argued that it turned a military rescue effort into a financial gamble. Moulton has been vocal about his concerns over prediction markets, having recently banned his staff from using platforms like Polymarket and Kalshi due to worries that financial incentives could impact policy decisions.
A Polymarket spokesperson stated that the listing did not meet the company's integrity standards and was removed shortly after it appeared. The incident highlights the growing regulatory pressure on prediction markets, with a group of congressional Democrats introducing legislation to ban contracts related to elections, wars, 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.
The NFL has also asked operators to avoid offering contracts that could be deemed objectionable or open to manipulation. Despite the scrutiny, the market is expanding, with Kalshi securing a license to offer margin trading to institutional investors and new players, including JPMorgan, entering the market.