Why Democrats want to BAN PredictIt and other betting markets ahead of the 2024 presidential election

Democrats want to stifle predetermination prediction betting markets Polymarket, PredictIt and others saying they're a 'threat' to democracy.

As Republican nominee Donald Trump and Vice President Kamala Harris canvass wrong a constituent and nan red-hot title heats up, prediction markets person been a adjuvant instrumentality to gauge elector sentiment, showing which campaigner group are betting connected to win.

Popular platforms PredictIt and Polymarket person raked successful millions worthy of governmental prediction bets and boast a booming number of loyal users.

But their accelerated maturation is now successful danger, arsenic a group of Democrats is calling for betting connected elections to beryllium outlawed, saying nan believe is simply a threat to Democracy. 

'Mass commodification of our antiauthoritarian process would raise wide concerns astir nan integrity of our electoral process,' nan lawmakers wrote successful a letter, pleading pinch a trading regulator to prohibition nan bets. 

'Such an result is successful clear conflict pinch nan nationalist liking and would undermine assurance successful our governmental process.'

The missive sent to Commodity Futures Trading Commission (CFTC) Chairman Rostin Benham was signed by 8 Democrats.

Sen. Jeff Merkely, D-Mass., led nan missive which was besides signed by Democrat Sens. Elizabeth Warren, Mass., Chris Van Hollen, Md., Richard Blumenthal, Conn., and Sheldon Whitehouse, R.I., successful summation to Reps. Jamie Raskin, Md., and John Sarbanes, Md.

As of Monday morning, Polymarket showed that users were backing erstwhile President Donald Trump 55 percent to Vice President Kamala Harris's 43 percent. 

During nan aforesaid timeframe PredictIt showed Trump up 51 percent to Harris's 50 percent. 

Harris, whose run is conscionable hardly 3 weeks old, overcame erstwhile President Trump successful nan online prediction markets for nan first clip past Wednesday, getting 52 percent of nan ballot to Trump's 50 percent connected PredictIt.

The prediction markets reflector a number of caller polls that show nan vice president surging up of nan erstwhile president.  

The missive comes arsenic nan CFTC presently mulls whether aliases not it should let Kalshi - a U.S. prediction marketplace level - to let betting connected which governmental statement will power Congress travel November.

'The CFTC has to make a determination pinch respect to nan contracts, a determination which could efficaciously let ineligible gambling connected our elections,' nan missive states. 'This is simply a clear threat to our populist and elections.'

'We impulse nan CFTC to cull Kalshi's Congressional Contracts connected which governmental statement will beryllium successful power of each enclosure of nan U.S. Congress.'

The Democrats reason that wagering connected nan predetermination intimately resembles gambling and should beryllium regulated arsenic nan believe is, according to nan lawmakers, 'contrary to nan nationalist interest.' 

Polymarket has had astir $1 cardinal worthy of wagers made connected its level contempt nan level not allowing U.S.-based users to wager. 

Still, galore tin get astir nan platforms embargo successful nan U.S. utilizing a virtual backstage web (VPN) to instrumentality their providers into reasoning they are wagering from a location extracurricular nan country. 

PredictIt, meanwhile, is allowed to run wrong nan U.S. arsenic it is embroiled successful an ongoing ineligible conflict pinch nan CFTC, which successful 2022 revoked nan company's ineligible position it first issued successful 2014. 

'The CFTC has ne'er allowed a for-profit task to run a governmental arena contract, nor has nan agency permitted immoderate entity to run a governmental arena statement of specified scale,' nan missive said. 

'Establishing a ample scale, for-profit governmental arena betting marketplace successful nan United States by approving Kalshi's requested contracts, would profoundly undermine nan sanctity and antiauthoritarian worth of elections.' 

'Introducing financial incentives into nan elections process fundamentally changes nan motivations down each vote, perchance replacing governmental convictions pinch financial calculations.'

The Democrats besides statement really rich | Americans could wager connected a leader and past unfairly power that stake by simultaneously donating ample sums to prop up support for their candidate. 

'For example, billionaires could grow their already outsized power connected authorities by wagering bonzer bets while simultaneously contributing to a circumstantial campaigner aliases party,' they wrote. 

'There are beardown morals concerns arsenic governmental insiders privy to non-public accusation could wield their wrong accusation to profit astatine voters' expense.'

'Lastly, these bets could sway nan result of our elections, undermining nan voices of voters. If citizens judge that nan antiauthoritarian process is being influenced by those pinch financial stakes, it whitethorn further exacerbate nan disenfranchisement and distrust of voters already facing our nation.'

The lawmakers reason by again urging nan CFTC president to contradict Kalshi's proposal.