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, sparked outrage among lawmakers, including Rep. Seth Moulton, who deemed it 'disgusting' for reducing a military rescue effort to a financial wager.
Moulton has been vocal about his concerns over prediction markets, having recently prohibited his staff from using platforms like Polymarket and Kalshi due to potential policy influences. A Polymarket spokesperson stated that the listing failed to meet the company's integrity standards and was removed shortly after its appearance, prompting a review of the market's internal safeguards. This incident occurs amid rising regulatory pressure on prediction markets, with congressional Democrats introducing legislation to ban contracts related to elections, war, and government actions. Furthermore, senators have urged the Commodity Futures Trading Commission to prohibit markets linked to individual deaths, citing national security concerns.
Regulators are asserting their authority over the sector, with the CFTC filing lawsuits against states attempting to bypass federal oversight. The NFL has also requested that operators avoid offering contracts that could be deemed objectionable or manipulable. Despite the scrutiny, the market continues to expand, with Kalshi securing a license for margin trading and new players, including JPMorgan, entering the market.