Congress is scrambling to regulate prediction markets

"More than a dozen bills have been introduced this year aimed at regulating betting markets, according to the Congressional Research Service. Not one has made meaningful progress towards becoming law."

"Torres, who has introduced other bills aimed at cracking down on illicit prediction market betting, is proposing criminal penalties including up to five years of imprisonment for using campaign funds to gamble on prediction markets."

"His new bill, the Campaign Funds Integrity Act of 2026, would have the Federal Election Commission devise guidance to enforce the ban and refer violators to the Department of Justice."

"The Trump administration has largely resisted strict guardrails like these, lowering the chances of any major prediction market bill becoming law."

More than a dozen bills have been introduced to regulate betting markets, and none have advanced meaningfully toward becoming law. A new proposal from Rep. Ritchie Torres would ban the use of campaign funds to gamble on prediction markets. The bill would create criminal penalties of up to five years in prison for violations. The Federal Election Commission would be tasked with issuing guidance to enforce the ban and referring violators to the Department of Justice. Prior incidents show lawmakers using campaign funds to gamble through more traditional methods, but it is unclear whether prediction market bets have occurred. Additional lawmakers are pushing prediction market legislation, while the Trump administration has resisted strict guardrails, reducing the likelihood of major bills passing.

Read at Axios