US Senator Richard Blumenthal of Connecticut has introduced a new measure to enhance regulations on prediction markets due to rising concerns about this developing sector. He stated that prediction markets have become prone to fraud and require control.
Blumenthal’s Prediction Markets Security and Integrity Act aims to establish federal regulations for prediction markets. Co-sponsored by New Jersey Senator Andy Kim, the measure seeks to prohibit insider trading, a major issue in prediction markets. The Act addresses concerns like match manipulation and event contracts linked to war, death, and military actions. It also mandates age restrictions and bans advertising to minors. Additionally, it would overturn a CFTC ruling that attempted to bypass state gambling laws.
Senator Blumenthal argued that the lack of federal or state protections has made prediction markets a place for insider trading, market manipulation, and underage gambling. He criticized prediction markets for treating war as a gambling game, creating risks for national security leaks.
“My measure—the Prediction Markets Security and Integrity Act—puts guardrails on this out-of-control industry. It bans dangerous and unethical bets and protects consumers from fraud and other predatory practices.” – Sen. Richard Blumenthal
Senator Kim mentioned that prediction markets foster corruption and exploitation, with a few benefiting at the cost of ordinary Americans. He stressed the need for foundational guardrails to regulate this “unregulated industry.”
“By instating basic guardrails and safeguards through this legislation, we can better protect consumers and safeguard against real threats to our national security coming out of this unregulated industry.” – Sen. Andy Kim
The full bill text is available on Blumenthal’s official website. Meanwhile, US tribal organizations recently discussed the threats prediction markets pose to the established tribal gaming industry.
- SCCG Management. The Gambling Industry’s Global Connector. Access Here.
- Source: SCCGManagement.com
