Two US lawmakers have introduced a new bill. That aims to stop people from betting on violent global events. The proposal is called the Death Bets Act. It would ban prediction markets from offering bets related to war, terrorism, assassination or a person’s death. The bill was introduced on March 10 by Mike Levin and Adam Schiff. Lawmakers say the goal is to prevent markets from turning real-world tragedies into financial bets.
The full name of the bill is the Discouraging Exploitative Assassination, Tragedy and Harm Betting in Event Trading Systems Act. Supporters say that betting on such events raises serious moral and security concerns. They warn that permitting these markets may generate incentives for violence or the misuse of sensitive information.
Prediction Markets Have Grown Quickly
Prediction markets allow users to bet on the outcome of real-world events. People place money on whether something will happen. Additionally, prices shift based on what the crowd believes. These platforms have become popular in the crypto world. Many use blockchain technology or digital tokens to run their markets.
In recent years, trading volumes have surged. For example, platforms like Polymarket saw billions of dollars in activity during the 2024 US elections. Supporters say these markets help collect “crowd wisdom.” In theory, large groups of traders can predict outcomes better than individuals.
But some markets have gone further. Users have placed bets on events such as military conflicts or leadership changes in foreign governments. These types of bets have raised ethical questions. About whether people should profit from violent or tragic events.
Lawmakers Say the Risks Are Too High
The Death Bets Act aims to stop those types of markets completely. It would apply to any platform regulated by the Commodity Futures Trading Commission. Under the proposal, prediction platforms could not offer contracts. That involves war, terrorism, assassinations or the death of individuals.
Senator Schiff said such markets could create dangerous incentives. He warned that people with inside information might try to profit from national security events. Representative Levin also argued that betting on war or death should not exist in legal markets. According to supporters of the bill, clear rules are needed as regulators review prediction market policies.
Industry Faces Possible Changes
If the Death Bets Act becomes law. It could reshape how prediction markets operate in the US. Platforms that accept these types of bets might need to remove them. If not, they can be subject to fines under federal laws. Critics argue that severe laws could drive activity to offshore platforms. It also decentralized markets that are harder to regulate.
Supporters of prediction markets argue they can provide useful information about global events. They say these platforms often reflect public expectations in real time. But opponents believe certain topics cross ethical boundaries.
What Happens Next?
The new bill has just been introduced. It still needs approval from Congress before becoming law. Because the US government remains politically divided. The proposal may take time to move forward. Even so, the introduction of the Death Bets Act shows growing concern. About the role of prediction markets in crypto and finance. As these platforms continue to expand. Lawmakers appear increasingly focused on drawing clear lines between innovation and ethical limits.
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