Two Supreme Court justices weighed in on prediction markets this week and the ethical predicament that comes with them.
Justices Amy Coney Barrett and Elena Kagan said “that’s already covered,” in response to a question about if anything is being done about prediction markets and the issue they pose for the work done behind closed doors at the court. Barrett and Kagan said there are policies in place, but they would review those policies.
“We don’t want loopholes,” Barrett said according to CNN.
It comes as Sen. Chris Van Hollen urged Chief Justice John Roberts to prohibit justices, judges, staff and clerks from participating in the markets. The comments also come on the heels of an investigation into a teleprompter operator for President Donald Trump trading on the president’s speeches.
Supreme Court predicament
Because the justices and staff work behind closed doors on the cases, they often know results months ahead of the announcements.
Watchdog groups suggest that is an issue when it comes to prediction markets and the money traded on things like the outcome of cases.
That comes as some justices have been under other ethical scrutiny for taking gifts and trips.
Senator asks for transparency
Van Hollen wrote a letter to the Supreme Court this week urging the justices to do more to help instill public trust in the institution.
“It is vitally important that the American public have trust in the courts, and taking further action to create a clear standard is critical to regaining that trust,” Van Hollen wrote.
Van Hollen asked for the Roberts to “clearly and expressly prohibiting” anyone involved in the court to trade on prediction markets.
Other branches took action
The Senate adopted a rule earlier this year banning senators and their staff from participating in markets.
House members have implemented similar rules.
Legislators have also introduced multiple bills addressing prediction markets. That includes a bill introduced this week by lawmakers to prohibit sports event trading on prediction markets..
Lottery group weighs in on predictions
The North American Association of State and Provincial Lotteries has joined in calling for more regulation of prediction markets.
The group, which includes 53 lottery organizations across North America, published a statement to address “an attempt to create a new type of gambling and conceal its true identity.”
Prediction markets would have a negative impact on the integrity of sports betting and lottery offerings if they fail to better regulate, the NASPL said.
The group also endorsed a position paper from the World Lottery Association that said the prediction markets undermines established gambling policies and regulations across the globe.
