Democrats Back Election Betting Ban as Interest in US Political Wagering Surges

Democratic lawmakers asked the chairman of the CFTC to finalize and implement a proposed rule that would prohibit trading in contracts involving “gaming,” a definition that would include political contests and sporting events.

Geoff Zochodne - Senior News Analyst at Covers.com
Geoff Zochodne ? Senior News Analyst
Aug 6, 2024 ? 17:15 ET ? 4 min read
US Capitol
Photo By - USA TODAY Sports

A group of Democratic lawmakers wants to keep big money groups from placing big election bets, urging a federal regulator to follow through with a proposed ban on de facto political wagering. 

U.S. Senators Jeff Merkley, Richard Blumenthal, Chris Van Hollen, Elizabeth Warren, and Sheldon Whitehouse, along with Representatives Eleanor Holmes Norton, Jamie Raskin, and John Sarbanes sent a letter on Monday seeking the election betting ban. 

The Democratic lawmakers asked the chairman of the Commodity Futures Trading Commission (CFTC) to finalize and implement a proposed rule that would prohibit trading in contracts involving “gaming,” a definition that would include political contests and sporting events.

“Election gambling fundamentally cheapens the sanctity of our democratic process,” the Democrats said in their letter. “Political bets change the motivations behind each vote, replacing political convictions with financial calculations. Allowing billionaires to wager extraordinary bets while simultaneously contributing to a specific candidate or party, and political insiders to bet on elections using non-public information, will further degrade public trust in the electoral process.”

The Democrats indeed seem less worried about recreational bettors having a flutter on who they think will win in November than the financial types who could throw serious sums of money around on political contracts. Nevertheless, the CFTC’s proposal would stifle election wagering both big and small through regulated exchanges, restricting the already-restricted avenues of such betting in the U.S.

States that have legalized and regulated sports betting do not permit election betting through those same sportsbooks. That leaves offshore and unregulated options, as well as experimental markets offered by PredictIt and the Iowa Electronic Markets, where users can buy and sell election-related contracts. 

The CFTC is still taking comments from the public on the proposed rule and will do so until Thursday. The regulator has already received more than 400 submissions from interested parties, including at least one other Democratic lawmaker, Minnesota Sen. Amy Klobuchar, who appears to favor a ban on election contract trading.

“Betting on election outcomes can incentivize those with financial or political interests to interfere with elections and poses risks to public confidence in our democracy,” Klobuchar wrote in a July 8 letter to CFTC Chairman Rostin Behnam. “Notably the Commission has previously rejected proposals to create political betting markets because of the potential negative impact that such bets could have on the integrity of our elections, including declining to approve one proposal to permit betting or wagering on elections just last year.”

On the other hand...

The CFTC has heard from supporters of election betting through regulated exchanges, such as a representative of Nasdaq Inc., who said the stock-exchange operator believes political event contracts (PEC) are not gambling.

In addition to acting as a "valuable source of information" for politicians, journalists, and the public, the regulation of those contracts would allow for safeguards to be put in place to prevent manipulation, such as limits on the size of a bettors' position, the Nasdaq rep suggested.

“We believe that regulating event contracts, especially PECs, will bring many benefits to the marketplace and the political discourse in the United States,” Nasdaq’s Kevin Kennedy wrote in an Aug. 2 letter. “Regulation will provide legal certainty and legitimacy to PEC markets and platforms, which will encourage innovation and competition. Regulation will also enhance transparency and accountability, which will reduce fraud, manipulation, and abuse.”

Whatever the CFTC’s final decision, the interest in regulating de facto election betting through exchanges also comes as there is sizable interest in election betting overall. That follows a historic July in which President Joe Biden decided against running for reelection and an attempt on the life of former president Donald Trump. The latter event prompted some regulated sportsbooks in Ontario to shutter their election betting markets, suggesting some skittishness about political wagering exists even where it's legal.

Still, last month's events have shifted U.S. election odds and influenced related betting markets, such as who Vice President Kamala Harris would choose for her own VP candidate after having already cruised to the Democratic presidential nomination herself. On Tuesday, Harris officially selected Minnesota Gov. Tim Walz as her running mate, a candidate who was a double-digit underdog for the post only weeks ago.

On PredictIt, millions of contracts regarding the Democratic VP candidate were bought and sold in the run-up to Tuesday's announcement, suggesting lots of bettor interest in the outcome. That interest was also via a predictions market still considered experimental and that limits the amount of action its users can have on any given market.

“PECs have been traded on various platforms, such as PredictIt, Iowa Electronic Markets, and Betfair, for many years, and have attracted significant attention and participation from the public,” Kennedy noted. “PECs can offer a useful tool in analyzing elections and other political phenomena, as they can complement traditional sources of information, such as polls, surveys, and expert opinions.”

Pages related to this topic

Geoff Zochodne, Covers Sports Betting Journalist
Senior News Analyst

Geoff has been writing about the legalization and regulation of sports betting in Canada and the United States for more than three years. His work has included coverage of launches in New York, Ohio, and Ontario, numerous court proceedings, and the decriminalization of single-game wagering by Canadian lawmakers. As an expert on the growing online gambling industry in North America, Geoff has appeared on and been cited by publications and networks such as Axios, TSN Radio, and VSiN. Prior to joining Covers, he spent 10 years as a journalist reporting on business and politics, including a stint at the Ontario legislature. More recently, Geoff¡¯s work has focused on the pending launch of a competitive iGaming market in Alberta, the evolution of major companies within the gambling industry, and efforts by U.S. state regulators to rein in offshore activity and college player prop betting.

Popular Content

Legal Canadian sports betting

Best Canadian betting sites Ontario sports betting

Legal Canadian sports betting

Best Canadian betting sites Ontario sports betting
Covers is verified safe by: Evalon Logo GPWA Logo GDPR Logo GeoTrust Logo Evalon Logo
seductrice.net
universo-virtual.com
buytrendz.net
thisforall.net
benchpressgains.com
qthzb.com
mindhunter9.com
dwjqp1.com
secure-signup.net
ahaayy.com
tressesindia.com
puresybian.com
krpano-chs.com
cre8workshop.com
hdkino.org
peixun021.com
qz786.com
utahperformingartscenter.org
worldqrmconference.com
shangyuwh.com
eejssdfsdfdfjsd.com
playminecraftfreeonline.com
trekvietnamtour.com
your-business-articles.com
essaywritingservice10.com
hindusamaaj.com
joggingvideo.com
wandercoups.com
wormblaster.net
tongchengchuyange0004.com
internetknowing.com
breachurch.com
peachesnginburlesque.com
dataarchitectoo.com
clientfunnelformula.com
30pps.com
cherylroll.com
ks2252.com
prowp.net
webmanicura.com
sofietsshotel.com
facetorch.com
nylawyerreview.com
apapromotions.com
shareparelli.com
goeaglepointe.com
thegreenmanpubphuket.com
karotorossian.com
publicsensor.com
taiwandefence.com
epcsur.com
southstills.com
tvtv98.com
thewellington-hotel.com
bccaipiao.com
colectoresindustrialesgs.com
shenanddcg.com
capriartfilmfestival.com
replicabreitlingsale.com
thaiamarinnewtoncorner.com
gkmcww.com
mbnkbj.com
andrewbrennandesign.com
cod54.com
luobinzhang.com
faithfirst.net
zjyc28.com
tongchengjinyeyouyue0004.com
nhuan6.com
kftz5k.com
oldgardensflowers.com
lightupthefloor.com
bahamamamas-stjohns.com
ly2818.com
905onthebay.com
fonemenu.com
notanothermovie.com
ukrainehighclassescort.com
meincmagazine.com
av-5858.com
yallerdawg.com
donkeythemovie.com
corporatehospitalitygroup.com
boboyy88.com
miteinander-lernen.com
dannayconsulting.com
officialtomsshoesoutletstore.com
forsale-amoxil-amoxicillin.net
generictadalafil-canada.net
guitarlessonseastlondon.com
lesliesrestaurants.com
mattyno9.com
nri-homeloans.com
rtgvisas-qatar.com
salbutamolventolinonline.net
sportsinjuries.info
wedsna.com
rgkntk.com
bkkmarketplace.com
zxqcwx.com
breakupprogram.com
boxcardc.com
unblockyoutubeindonesia.com
fabulousbookmark.com
beat-the.com
guatemala-sailfishing-vacations-charters.com
magie-marketing.com
kingstonliteracy.com
guitaraffinity.com
eurelookinggoodapparel.com
howtolosecheekfat.net
marioncma.org
oliviadavismusic.com
shantelcampbellrealestate.com
shopleborn13.com
topindiafree.com
v-visitors.net
djjky.com
053hh.com
originbluei.com
baucishotel.com
33kkn.com
intrinsiqresearch.com
mariaescort-kiev.com
mymaguk.com
sponsored4u.com
crimsonclass.com
bataillenavale.com
searchtile.com
ze-stribrnych-struh.com
zenithalhype.com
modalpkv.com
bouisset-lafforgue.com
useupload.com
37r.net
autoankauf-muenster.com
bantinbongda.net
bilgius.com
brabustermagazine.com
indigrow.org
miicrosofts.net
mysmiletravel.com
selinasims.com
spellcubesapp.com
usa-faction.com
hypoallergenicdogsnames.com
dailyupdatez.com
foodphotographyreviews.com
cricutcom-setup.com
chprowebdesign.com
katyrealty-kanepa.com
tasramar.com
bilgipinari.org
four-am.com
indiarepublicday.com
inquick-enbooks.com
iracmpi.com
kakaschoenen.com
lsm99flash.com
nana1255.com
ngen-niagara.com
technwzs.com
virtualonlinecasino1345.com
wallpapertop.net
casino-natali.com
iprofit-internet.com
denochemexicana.com
eventhalfkg.com
medcon-taiwan.com
life-himawari.com
myriamshomes.com
nightmarevue.com
healthandfitnesslives.com
androidnews-jp.com
allstarsru.com
bestofthebuckeyestate.com
bestofthefirststate.com
bestwireless7.com
britsmile.com
declarationintermittent.com
findhereall.com
jingyou888.com
lsm99deal.com
lsm99galaxy.com
moozatech.com
nuagh.com
patliyo.com
philomenamagikz.net
rckouba.net
saturnunipessoallda.com
tallahasseefrolics.com
thematurehardcore.net
totalenvironment-inthatquietearth.com
velislavakaymakanova.com
vermontenergetic.com
kakakpintar.com
begorgeouslady.com
1800birks4u.com
2wheelstogo.com
6strip4you.com
bigdata-world.net
emailandco.net
gacapal.com
jharpost.com
krishnaastro.com
lsm99credit.com
mascalzonicampani.com
sitemapxml.org
thecityslums.net
topagh.com
flairnetwebdesign.com
rajasthancarservices.com
bangkaeair.com
beneventocoupon.com
noternet.org
oqtive.com
smilebrightrx.com
decollage-etiquette.com
1millionbestdownloads.com
7658.info
bidbass.com
devlopworldtech.com
digitalmarketingrajkot.com
fluginfo.net
naqlafshk.com
passion-decouverte.com
playsirius.com
spacceleratorintl.com
stikyballs.com
top10way.com
yokidsyogurt.com
zszyhl.com
16firthcrescent.com
abogadolaboralistamd.com
apk2wap.com
aromacremeria.com
banparacard.com
bosmanraws.com
businessproviderblog.com
caltonosa.com
calvaryrevivalchurch.org
chastenedsoulwithabrokenheart.com
cheminotsgardcevennes.com
cooksspot.com
cqxzpt.com
deesywig.com
deltacartoonmaps.com
despixelsetdeshommes.com
duocoracaobrasileiro.com
fareshopbd.com
goodpainspills.com
hemendekor.com
kobisitecdn.com
makaigoods.com
mgs1454.com
piccadillyresidences.com
radiolaondafresca.com
rubendorf.com
searchengineimprov.com
sellmyhrvahome.com
shugahouseessentials.com
sonihullquad.com
subtractkilos.com
valeriekelmansky.com
vipasdigitalmarketing.com
voolivrerj.com
zeelonggroup.com
1015southrockhill.com
10x10b.com
111-online-casinos.com
191cb.com
3665arpentunitd.com
aitesonics.com
bag-shokunin.com
brightotech.com
communication-digitale-services.com
covoakland.org
dariaprimapack.com
freefortniteaccountss.com
gatebizglobal.com
global1entertainmentnews.com
greatytene.com
hiroshiwakita.com
iktodaypk.com
jahatsakong.com
meadowbrookgolfgroup.com
newsbharati.net
platinumstudiosdesign.com
slotxogamesplay.com
strikestaruk.com
trucosdefortnite.com
ufabetrune.com
weddedtowhitmore.com
12940brycecanyonunitb.com
1311dietrichoaks.com
2monarchtraceunit303.com
601legendhill.com
850elaine.com
adieusolasomade.com
andora-ke.com
bestslotxogames.com
cannagomcallen.com
endlesslyhot.com
iestpjva.com
ouqprint.com
pwmaplefest.com
qtylmr.com
rb88betting.com
buscadogues.com
1007macfm.com
born-wild.com
growthinvests.com
promocode-casino.com
proyectogalgoargentina.com
wbthompson-art.com
whitemountainwheels.com
7thavehvl.com
developmethis.com
funkydogbowties.com
travelodgegrandjunction.com
gao-town.com
globalmarketsuite.com
blogshippo.com
hdbka.com
proboards67.com
outletonline-michaelkors.com
kalkis-research.com
thuthuatit.net
buckcash.com
hollistercanada.com
docterror.com
asadart.com
vmayke.org
erwincomputers.com
dirimart.org
okkii.com
loteriasdecehegin.com
mountanalog.com
healingtaobritain.com
ttxmonitor.com
nwordpress.com
11bolabonanza.com