Key Points
- A unanimous Senate vote approved an immediate prohibition on prediction market participation for senators and their staff
- Senator Bernie Moreno (R-Ohio) spearheaded the resolution that changed Senate rules instantly
- The decision followed criminal charges against a military member who allegedly used secret intelligence for Polymarket bets
- Representative Ashley Hinson (R) announced plans to bring a comparable measure to the House
- Both major prediction platforms expressed support for the legislative action
On Thursday, the United States Senate approved a sweeping prohibition preventing its members and staff from engaging with prediction markets. The measure, brought forward by Ohio’s Republican Senator Bernie Moreno, immediately altered Senate regulations upon passage.
Moreno emphasized that senators should not participate in speculative betting while receiving government salaries funded by taxpayers. The updated regulation prohibits members from entering contracts or transactions linked to outcomes of particular events.
The legislative action emerged in the wake of April 23 charges filed against a member of the special forces for allegedly exploiting classified intelligence to wager on Polymarket. The service member, connected to an operation targeting Venezuela’s former President Nicolás Maduro, has entered a not guilty plea.
Congress members also voiced alarm over suspicious betting patterns related to Iran military operations. Senate Majority Leader Chuck Schumer described the prohibition as an obvious necessity.
“We must never allow Congress to turn into a casino where members representing the public can gamble on wars, or economic crises, or elections,” Schumer stated during floor proceedings.
Widespread Political Agreement
The measure achieved passage through unanimous consent, with zero senators raising objections. Cross-party endorsement characterized the vote, though Schumer advocated for extending the restrictions to executive branch personnel and administration officials.
“The administration and its employees must apply these very same rules too,” Schumer declared, referencing what he termed a “troubling affinity to corruption and self-dealing.”
Representative Ashley Hinson, a Republican, announced via X that she intends to bring forward parallel legislation in the House of Representatives.
Platform Reactions
Polymarket, among the most prominent prediction market operators, expressed complete backing for the Senate measure. The platform indicated that its user agreement already prohibits such activities but characterized the legislation as “a step forward for the industry.”
Polymarket operates under a 2022 settlement with the CFTC that technically bars U.S.-based operations.
Tarek Mansour, who co-founded and leads competing platform Kalshi, similarly praised the resolution. He confirmed that Kalshi currently blocks congressional members from participation and actively enforces insider trading prevention measures.
Prediction market wagering on political outcomes has experienced dramatic expansion in recent years. Several political candidates have already been penalized for placing bets on their own electoral contests.
The Senate measure spans just 14 lines. Its swift passage stands in stark contrast to the Senate’s more gradual approach toward comprehensive cryptocurrency regulatory framework legislation.
At the time of the vote, Polymarket data indicated Democrats held 50-50 odds for retaking Senate control in the upcoming November elections.
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