Dems Push for Ban on Election Gambling to Protect Integrity

Democratic Lawmakers Push for Ban on Election Gambling

The Campaign for Election Integrity

Several Democratic lawmakers, led by Sen. Jeff Merkley and including Sen. Elizabeth Warren, are urging the Commodity Futures Trading Commission (CFTC) to finalize a rule banning gambling in U.S. elections. The primary goal of this campaign is to protect the integrity of the election process and restore public trust.

Concerns Over Wall Street Influence

In an Aug. 5 letter to CFTC Chairman Rosten Benham, lawmakers expressed concerns about the potential influence of Wall Street on election results. They believe that permitting large-scale 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 a target for foreign interference in elections,” the lawmakers wrote.

The Dangers of Electoral Gambling

The lawmakers’ letter also outlines the dangers associated with electoral gambling, arguing that it fundamentally undermines the sanctity of the democratic process. They point out that political gambling can shift motivations from political beliefs to financial calculations, ultimately undermining 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 letter supports the CFTC’s proposed rules, emphasizing that political primaries should not be treated as a “game” and that contracts on political events do not serve the economic purpose of the futures market. The lawmakers argue that the CFTC does not have the authority to regulate elections and campaigns, and allowing betting on elections at the federal level could potentially bypass state responsibilities.

Record Trading Volumes

Although the letter does not specify any particular platform, prediction market platform Polymarkets has experienced a surge in trading volumes. Data from the Dune dashboard shows that Polymarket’s monthly trading volume reached $387.03 million in July, driven by increased anticipation and discussion surrounding the upcoming U.S. presidential election in November.