Senate bans its own members and staff from betting in prediction markets

The Senate unanimously approved a bipartisan resolution Thursday prohibiting its members from participating in prediction markets, effectively barring senators with access to sensitive information from betting on future events.

The measure, which takes immediate effect as a change to Senate rules, comes amid growing concerns about the potential misuse of privileged information in betting activities. Just last week, a U.S. special forces soldier faced charges for allegedly using classified intelligence to place bets on the January capture of Venezuela’s then-president Nicolas Maduro.

“United States senators have no business engaging in speculative activities like prediction markets while collecting a taxpayer-funded paycheck, period,” said Senator Bernie Moreno, a Republican from Ohio who sponsored the resolution. An amendment from Democratic Senator Alex Padilla of California expanded the ban to include Senate staff as well.

Senate Minority Leader Chuck Schumer called the decision a “no-brainer” and urged the House of Representatives and the Trump administration to implement similar restrictions.

“We must never allow Congress to turn into a casino where members representing the public can gamble on wars or economic crises or elections,” Schumer said. “That would destroy the very principle of representative government.”

The resolution represents only the beginning of potential reforms in this area. Senators Todd Young (R-Ind.) and Elissa Slotkin (D-Mich.) have introduced more comprehensive legislation that would prohibit all federally elected officials and government employees from using insider information for prediction market betting.

“This is a good first step,” Young said of the Senate resolution, while encouraging his colleagues to consider their broader bill.

The rapidly growing prediction markets industry has faced increasing scrutiny in recent months. Platforms like Polymarket and Kalshi allow users to place bets on the outcomes of political events, economic indicators, and geopolitical developments. Polymarket in particular has drawn criticism for facilitating offshore trades beyond the reach of U.S. regulatory authorities.

Earlier this month, The Associated Press reported that several new Polymarket accounts had made suspiciously well-timed bets regarding a potential U.S.-Iran ceasefire on April 7, resulting in profits of hundreds of thousands of dollars. The timing and specificity of these bets raised concerns about possible insider information being exploited.

On the same day the AP published its report, the White House issued warnings to staff against using private information for trading on prediction markets—a significant move that highlights the growing concerns within the administration about potential ethical breaches.

Despite these warnings, the Trump administration has been a notable supporter of the prediction market industry in its legal battles with states attempting to regulate or ban such platforms. Donald Trump Jr., the president’s eldest son, serves as an advisor for both Polymarket and Kalshi. Additionally, Truth Social, the former president’s social media platform, is developing its own cryptocurrency-based prediction market called Truth Predict.

President Trump himself has acknowledged the growing prevalence of betting markets, stating recently, “The whole world, unfortunately, has become somewhat of a casino, and you look at what’s going on all over the world and Europe and every place, they’re doing these betting things.”

The Senate’s unanimous decision reflects growing bipartisan concern over the ethical implications of lawmakers participating in speculative markets where they could potentially leverage their access to sensitive information. As prediction markets continue to expand and gain popularity, the question of who should be allowed to participate—and under what circumstances—is likely to remain a pressing regulatory concern for both Congress and federal agencies.