House Committee Moves to Ban Lawmakers from Political Betting Markets

The House Ethics Committee has advanced a bipartisan bill that would officially ban members of Congress from participating in political prediction markets. The legislation seeks to prevent lawmakers from using non-public information to bet on the outcome of elections, policy decisions, or other political events. The move follows a surge in the popularity of platforms like Polymarket and Kalshi, which allow users to trade on the probability of future events.

The vote to move the bill forward revealed a sharp party-line fracture regarding the scope of the restrictions. While there is general agreement on preventing insider trading, some lawmakers expressed concern that the ban might be too broad, potentially infringing on legitimate financial hedging. Conversely, supporters of the bill argue that any participation in these markets by elected officials creates an inherent conflict of interest and erodes public trust.

If passed by the full House, the bill would represent one of the most significant updates to congressional ethics rules in years. It accompanies a broader legislative trend aimed at tightening financial restrictions on public officials, including ongoing debates over banning individual stock trading. The bill now heads to the floor, where it faces a complex path toward reconciliation with the Senate.