Democratic Lawmakers Advocate for Banning Election Gambling to Protect Integrity
Several Democratic lawmakers, including Sen. Jeff Merkley and Sen. Elizabeth Warren, are pressuring the Commodity Futures Trading Commission (CFTC) to finalize a proposed rule banning gambling in U.S. elections. Their campaign aims to protect the integrity of the election process and restore public trust.
Ban Finalized: Lawmakers Defend Election Integrity
In an Aug. 5 letter to CFTC Chairman Rosten Benham, lawmakers expressed concerns about the influence of Wall Street on election results. They argue that allowing large political betting markets could disrupt elections and further erode public trust in democracy.
“As the 2024 presidential election approaches, voters are already faced with a political system that allows the wealthiest individuals and corporations to funnel dark money into elections without disclosing it. The threat of violence and extremism is high, and the United States remains targeted by foreign actors seeking to interfere with the election,” the lawmakers wrote.
Additionally, the lawmakers’ letter clearly outlines the dangers of electoral gambling, which they argue fundamentally undermines the sanctity of the democratic process. They believe that political gambling shifts motivations from political beliefs to financial calculations and undermines people’s trust in elections.
“Allowing billionaires to make huge bets while donating to specific candidates or parties, and political insiders using non-public information to bet on elections, will further erode public trust in the electoral process,” they added.
The Call for Prohibition of Political Betting
The letter also supports the CFTC’s proposed rules, emphasizing that the results of political primaries amount to a “game” and are contrary to the public interest. Lawmakers argued that contracts on political events did not serve the economic purpose of the futures market and that the CFTC did not have the power of Congress to regulate elections and campaigns. Additionally, many states already ban betting on elections, and offering such bets at the federal level could unlawfully circumvent state responsibilities.
Promoting Election Transparency and Accountability
Senator Merkley previously sent a letter to the U.S. Commodity Futures Trading Commission urging it to reject a proposal by private prediction market operators to allow legal gambling on U.S. elections. However, Senator Merkley stated on his official page that “the CFTC ultimately did not approve this proposal.”
Although the letter did not mention any specific platform, prediction market platform Polymarkets has seen record trading volumes. According to data from the Dune dashboard, Polymarket’s monthly trading volume reached $387.03 million in July, fueled by increased anticipation and discussion about the upcoming U.S. presidential election in November.