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 deemed to have fallen short of the company's integrity standards, had sparked outrage among lawmakers, including Rep. Seth Moulton, who denounced it as 'disgusting' for reducing a military rescue effort to a financial wager.
The incident has highlighted the rising regulatory pressure on prediction markets, with congressional Democrats introducing legislation to ban contracts tied to sensitive topics such as elections, war, and government actions. Meanwhile, regulators are asserting their authority over the sector, with the CFTC filing lawsuits against states attempting to bypass federal oversight.
The NFL has also weighed in, urging operators to avoid offering contracts that could be deemed objectionable or open to manipulation. Despite the scrutiny, the market continues to expand, with new players entering the fray, including JPMorgan, which has expressed interest in joining the sector.