New York Legislator Proposes Ban on Political Betting in the U.S.

Legislation Introduced by U.S. Representative

New York Representative Ritchie Torres has introduced legislation aimed at prohibiting betting on political events, gaining the support of over 30 fellow Democrats in the House of Representatives. This proposal follows a recent incident where a user on the Polymarket platform earned over $400,000 on a contract predicting the ousting of Venezuelan President Nicolás Maduro.

In a notice issued on Friday, Torres announced the introduction of the Public Integrity in Financial Prediction Markets Act for 2026. According to this legislation, elected officials, politically appointed individuals, and government employees would be barred from buying, selling, or exchanging prediction market contracts related to governmental policies while possessing confidential information.

"The most corrupt corner of Washington, D.C., could be the intersection of prediction markets and the federal government—where insider trading and self-dealing are not merely imaginary risks, but demonstrable dangers," Torres stated.

This proposal comes just days after a Polymarket account placed a $32,000 bet on the prediction that Maduro would be removed from power by January 31. U.S. President Donald Trump announced on Saturday that American forces had entered Venezuela and captured Maduro.

Torres emphasized that allowing elected officials to utilize platforms like Polymarket could encourage them to push policies for their personal benefit. "No elected official is elected to profit from their position," Torres asserted.

Simultaneously, legislation concerning the structure of the digital asset market is set to be discussed in the Senate next week, aiming to revise the regulatory roles of the Commodity Futures Trading Commission and the Securities and Exchange Commission.