Ban Election Betting to Protect Democratic Integrity

I am writing to urge you to support legislation banning election betting through prediction market platforms like Kalshi and Polymarket. These apps allow users to wager on election outcomes, creating serious risks to democratic integrity as we approach the 2026 midterms. The potential for market manipulation is alarming. In October 2024, Trump's chances surged on Polymarket after $30 million in bets were placed, raising concerns about wealthy donors artificially inflating candidates' odds to influence voter behavior and news coverage. Yale professor Jeffrey Sonnenfeld has warned about vulnerability to foreign manipulation, a threat that becomes more dangerous as CNN and CNBC have announced partnerships with Kalshi to incorporate betting markets into their election coverage. These platforms circumvent state gambling laws by calling their products "event contracts" rather than bets, claiming regulation by the Commodity Futures Trading Commission exempts them from state oversight. However, eight states including New York, New Jersey, and Maryland have already sent cease and desist letters, and Massachusetts has sued Kalshi for operating as an illegal gambling site. The platforms process billions of dollars in bets weekly, with Kalshi CEO Tarek Mansour stating his "long-term vision is to financialize everything and create a tradable asset out of any difference in opinion." The Biden administration correctly argued that commodifying elections is "contrary to the public interest." Elections should reflect the will of voters, not the financial interests of wealthy bettors and hedge funds like Susquehanna International Group that serve as market makers. DePaul University law professor Karl Lockhart warns that financially struggling people are seeking "lottery ticket-like payouts," reflecting desperation that these platforms exploit. I urge you to introduce or co-sponsor federal legislation explicitly prohibiting election betting and closing the regulatory loopholes these platforms exploit. Our democracy should not be treated as a casino game.