US elections caught in the crossfire of Polymarket controversy

Lea Hogg August 6, 2024

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US elections caught in the crossfire of Polymarket controversy

A recent development in the U.S. political landscape has sparked a heated debate about the intersection of politics and gambling. A group of U.S. lawmakers, led by Oregon Senator Jeff Merkley, has called on the Commodity Futures Trading Commission (CFTC) to ban gambling on American elections. This move comes in response to concerns about the activities of Polymarket, a platform that allows users to bet on the outcomes of various events, including U.S. elections.

The lawmakers, including Senators Richard Blumenthal, Chris Van Hollen, Elizabeth Warren, and Sheldon Whitehouse, along with Representatives Eleanor Holmes Norton, Jamie Raskin, and John Sarbanes, expressed concern that allowing betting markets on elections could undermine public trust in democracy¹. 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 legislators 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 lawmakers warned that allowing large wagers from wealthy individuals and corporations could undermine the integrity of the electoral process. They argued that election gambling fundamentally cheapens the sanctity of our democratic process.

Historical perspective

The controversy surrounding election gambling is not new. During the Victorian and Edwardian periods, stricter gambling laws impacted political betting. However, in 1963, Ladbrokes began openly accepting bets on political events, and by the following year’s general election, William Hill had joined in.

In recent years, the issue has resurfaced with a vengeance.?The 2024 United Kingdom general election was marred by a betting scandal, with allegations that illicit bets were placed by political party members and police officers, some of whom may have had insider knowledge of the date of the general election. This scandal has led to a broader discussion about the role of gambling in politics and its potential impact on the democratic process.

The ongoing Polymarket dispute and the drive to prohibit election betting in the U.S. will maintain the integrity of elections, and sustain voter confidence, as these factors could be pivotal for the survival of democracy.