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 criticized by lawmakers, including Rep. Seth Moulton, had enabled users to wager on the timing of the US confirmation of the rescue of two airmen after an F-15E fighter jet was shot down over Iran.
Moulton condemned the listing, calling it 'disgusting' and arguing that it reduced a military rescue effort to a financial transaction. The market's removal comes as prediction markets face growing regulatory pressure, with congressional Democrats proposing legislation to ban contracts tied to sensitive topics. The incident has also sparked a review of Polymarket's internal safeguards.
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 asked operators to avoid offering contracts that could be deemed objectionable or manipulable. Despite the scrutiny, the market continues to expand, with new players entering the scene, including JPMorgan, which has expressed interest in joining the fray.