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Kalshi and Polymarket Face Scrutiny as Lawmakers Target Death-Related Betting Markets

Prediction markets Kalshi and Polymarket are under scrutiny from U.S. lawmakers after users placed large bets on events connected to U.S. strikes on Iran, including contracts related to the potential death of Iran’s Supreme Leader. Over $529 million was traded on related Polymarket contracts. Six Democratic senators have urged the CFTC to ban such death-related prediction contracts, citing ethical and national security risks. Kalshi’s CEO defended the platform, though the company later admitted to unclear contract wording and issued refunds. Polymarket, which operates offshore with fewer regulations, saw some users profit $1 million from well-timed bets. The situation highlights ongoing regulatory challenges in the prediction market industry.

TheNewsCrypto03/02 14:28