Lawmakers Call on CFTC to Ban Gambling on American Elections

A group of U.S. lawmakers, led by Oregon Senator Jeff Merkley, has called on the Commodity Futures Trading Commission to ban gambling on American elections.

A group of U.S. lawmakers led by Oregon Senator Jeff Merkley has called on the Commodity Futures Trading Commission to ban gambling on American elections.

The lawmakers expressed concern that allowing betting markets on elections could erode public trust in democracy. They argue that such betting markets could lead to corruption, influence election results, and erode voter confidence.

In a letter to CFTC Chairman Rostin Behnam, the lawmakers supported a proposed rule that would prohibit event contracts related to U.S. election outcomes. They emphasized that elections are not-for-profit enterprises and stressed the importance of preventing the commodification of the democratic process.

The letter warned that allowing large wagers from wealthy individuals and corporations could undermine the integrity of the electoral process.

“Election gambling fundamentally cheapens the sanctity of our democratic process,” the letter said. “Political bets change the motivations behind each vote, replacing political convictions with financial calculations.”

The lawmakers urged the CFTC to finalize and implement the rule swiftly.

One example of a gambling tool that could be used to bet on elections is Polymarket. Polymarket is a predictions market on the Polygon blockchain that has gained popularity due to its transparency and diverse betting options.

Users buy shares using USD coin (USDC) and trade on outcomes of events like elections, sports, and crypto prices. Shares’ values fluctuate based on market sentiment, offering a new trading experience.

In July, Polymarket saw significant growth with over 1.5 million bets and a total trading volume exceeding $1 billion, fueled by the U.S. presidential election debate. Data shows a 57% chance for Trump to win, attracting $54 million in bets, while Harris holds a 39% chance with $38.5 million.

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