With people make serious money on betting websites like Polymarket and Kalshi by placing wagers on world events such as wars, government actions, and terror attacks, Representative Yassamin Ansari (D-AZ) has helped introduce a bicameral bill to prevent government officials from placing and profiting from these wagers as insiders.
The Banning Event Trading on Sensitive Operations and Federal Functions (BETS OFF) Act prevents anyone who feasibly controls, and likely knows, the outcome of such an event from placing a bet on it on such platforms.
The bill strengthens existing laws against illegal gambling, shutting down payment systems for illegal online platforms and imposing criminal penalties on U.S. citizens who promote, manage, own, or supervise these businesses.
This concern was sparked at the beginning of March, when "Operation Epic Fury" began. A Polymarket user named "Magamyman" won a $553,000 bet that the United States would strike Iran and kill Supreme Leader Ayatollah Khamenei.
Senator Chris Murphy (D-CT) claimed, without evidence, that someone in the Trump Administration is "Magamyman," but the White House denied it.
Nevertheless, because Polymarket and Kalshi frequently host such wagers, pressure is mounting to prevent government officials from profiting from them.
"Prediction markets sell themselves as a place where everyone has an equal shot at winning big," said Rep. Ansari in a press release. "The reality is they're rigged against ordinary people and ripe for abuse – especially when betting on government actions."
"When the President and national security officials are making life and death decisions, the last thing they should be considering is whether they can personally profit," she commented. "This bill puts an end to that corruption and disturbing national security risk."
The primary sponsors of the bill are Sen. Murphy and Senator John Hickenlooper (D-CO) in the Senate, while the primary sponsor in the House is Representative Greg Casar (D-TX), joined by Representatives Gabe Amo (D-RI) and Rashida Tlaib (D-MI).
