WASHINGTON — In a unanimous decision Thursday, the U.S. Senate enacted new regulations prohibiting its members and staff from participating in prediction market gambling, citing concerns about potential misuse of privileged information.
The bipartisan rule change took effect immediately after passing by voice vote, addressing growing worries about lawmakers who have access to confidential details potentially wagering on future events. The action follows recent criminal charges filed against a U.S. special forces member accused of leveraging classified intelligence to place bets on Venezuela’s former president Nicolas Maduro’s January capture, while legislators express mounting unease about public gambling on potential conflict with Iran.
Republican Senator Bernie Moreno of Ohio, who authored the original proposal, stated: “United States senators have no business engaging in speculative activities like prediction markets while collecting a taxpayer-funded paycheck, period.” Democratic Senator Alex Padilla of California successfully added an amendment extending the prohibition to congressional staff members.
Senate Minority Leader Chuck Schumer praised the decision as obvious common sense and urged both the House of Representatives and Trump administration to implement similar restrictions. “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 declared. “That would destroy the very principle of representative government.”
Republican Senator Todd Young of Indiana and Democratic Senator Elissa Slotkin of Michigan have proposed broader legislation that would prohibit all federal officials and government workers from using insider knowledge for prediction market gambling. Young called Thursday’s action “a good first step” while pushing for consideration of their comprehensive bill.
Major prediction market platforms like Polymarket and competitor Kalshi face increased examination as their operations expand. Polymarket has drawn particular criticism for facilitating offshore transactions that fall outside U.S. regulatory oversight.
The Associated Press revealed earlier this month that newly created Polymarket accounts placed remarkably precise, strategically timed wagers on potential U.S.-Iran ceasefire agreements for April 7, generating hundreds of thousands in profits. Following the AP’s investigation, the White House issued warnings to staff against using confidential information for prediction market trading.
The current administration has supported the expanding prediction market sector in legal battles against states attempting to prohibit these platforms. Donald Trump Jr. serves as an advisor to both Polymarket and Kalshi, while his father’s Truth Social platform is developing Truth Predict, a cryptocurrency-based prediction market.
President Trump recently commented on the trend, saying: “The whole world, unfortunately, has become somewhat of a casino, and you look at what’s going on all over the world and Europe and every place, they’re doing these betting things.”
