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flag U.S. lawmakers introduced the BETS OFF Act in March 2026 to ban betting on national security events like war and terrorism, citing ethical and security risks.

flag U.S. flag Senators Chris Murphy and Representative Greg Casar introduced the BETS OFF Act in March 2026 to ban prediction market bets on sensitive national security events like war, terrorism, assassination, and government actions, following reports that users profited from wagers tied to U.S.-Israel military operations in Iran and other high-stakes events. flag The legislation aims to prevent insider trading and perverse incentives by prohibiting contracts on events with known or controllable outcomes, citing ethical and security risks. flag While platforms like Polymarket and Kalshi operate under CFTC oversight, they face scrutiny over potential misuse, with some users allegedly placing bets hours before attacks. flag The bill reflects growing Democratic concern over the influence of prediction markets on national decision-making, though it faces political hurdles in a Republican-controlled Congress.

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