Lawmakers Propose DEATH BETS Act to Ban Controversial Prediction Markets

Two Democratic lawmakers have introduced the DEATH BETS Act, aiming to prohibit prediction market contracts related to war, death, terrorism, and assassination. According to NS3.AI, this legislative move comes after reports that over $500 million was wagered on the timing of U.S. military strikes on Iran. The proposed bill seeks to amend the Commodity Exchange Act, preventing any entity registered with the Commodity Futures Trading Commission (CFTC) from listing such contracts. It also aims to eliminate the CFTC's discretion to permit these contracts based on a public-interest test. This initiative follows the CFTC's efforts to draft guidance for event contracts and the backlash against controversial markets on platforms like Polymarket and Kalshi.