Congress weighs sweeping ban on prediction markets tied to sports and politics

A bipartisan push in Congress would ban prediction markets on elections, sports, government actions, and military moves, with the STOP Corrupt Bets Act led by Sen. Merkley and a House version by Rep. Raskin. Competing bills seek to ban or restrict similar contracts, citing corruption and insider trading risks, while proponents argue regulation via the CFTC is sufficient. Industry players like Kalshi and Polymarket have signaled reforms or safety measures, and a Government Accountability Office study is being considered as part of the legislative package.