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 came 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 vocal about his concerns over prediction markets, having recently prohibited his staff from using platforms like Polymarket and Kalshi.
A spokesperson for Polymarket stated that the market 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 a group of congressional Democrats recently introducing legislation to ban contracts tied to elections, war, and government actions. Additionally, regulators are asserting their authority over the sector, with the CFTC filing lawsuits against three states over attempts to bypass federal oversight.
The NFL has also asked operators to avoid offering contracts that could be seen as objectionable or open to manipulation. Despite the scrutiny, the market is continuing to expand, with Kalshi securing a license to offer margin trading to institutional investors and new players, including JPMorgan, entering the market.