Election betting had a moment this fall with hundreds of millions wagered by Americans, but US lawmakers are looking to shut it down.
US Reps. Andrea Salinas (D-OR) and Jamie Raskin (D-MD) introduced a bill this week to prohibit election betting. The Ban Gambling on Elections Act is similar to a bill Sen. Jeff Merkley (D-OR) filed earlier this year.
“Betting on elections degrades them from an investment in leadership to a profit-maximizing game,” Merkley said in a statement. “In addition, this practice is corrupt since those betting can influence the outcome by funding late-cycle smear campaigns. It’s like betting on a baseball game when you control the umpire.
“It’s a great step forward to have House leaders like Rep. Raskin and Congresswoman Salinas take on this fight.”
Election betting in the US
While election betting had been taboo as sports betting began to explode in the past few years, a federal appeals court opened up the option in October.
Trading platform Kalshi began seeking permission from the Commodity Futures Trading Commission in June 2023 to list contracts allowing Americans to bet on elections. The CFTC told Kalshi it could not offer the wagers in September 2023.
Following a court decision favoring Kalshi and an ensuing appeal from the CFTC, the federal appeals court made its ruling.
According to a MarketWatch report, Kalshi and ForecastEX took more than $900 million in wagers during US House, Senate and presidential races.
New House bill
The new bill adds 60 words to the Commodity Exchange Act. It would simply specify that election betting is not allowed.
“We cannot play roulette with our democracy by allowing this kind of wagering without a thorough accounting of the potential consequences,” Salinas said.
Raskin added, “With distrust in our electoral system at an all-time high, we must crack down on gambling in all US elections. Our democracy demands reliable and transparent processes to cast ballots and tally results, not a horserace clouded by gambling odds and bets placed.
“I am proud to go all-in with Congresswoman Salinas and Senator Merkley in calling on Congress to ante up and pass this commonsense legislation.”
Federal scrutiny continues to grow
The election betting bill comes on the heels of a US Senate hearing Tuesday on the sports betting industry.
Sen. Dick Durbin, the chair of the Senate committee, said the discussion is only just begging.
In the statement announcing the Ban Gambling on Elections Act, Salinas said she would continue to work to ensure that more resources are directed toward responsible gambling.
“I will also continue working to provide more federal resources for gambling addiction treatment and research,” Salinas said. “While sports betting and online gambling have become permanent forms of American entertainment, we must acknowledge and help mitigate the harm caused by related addictions.”
