Schumer Calls on White House to Ban Prediction Market Wagering

Schumer is concerned about the potential for insider trading

Schumer is pointing to the dangers of government members or staff using insider information to gain an advantage. He cites this as an inherent concern created by access to prediction markets. He took note that 16 accounts made more than $100,000 each by correctly predicting a U.S. military strike on Iran. Those event contract plays were made mere hours before the attack became known to the public.

Just last week, a U.S. Army Special Forces soldier was charged with using classified information to make more than $400,000 on bets. These plays were connected to the U.S. operation to capture former Venezuelan President Nicolás Maduro. A month ago, three candidates running for office in Minnesota, Texas, and Virginia were hit with fines and issued bans by the prediction market site Kalshi. Each candidate was caught making trades involving their own political races.

“Insiders are cashing in on classified information, on military strikes, and on their own elections, while the American people are kept in the dark,” Schumer said in a statement. “This isn’t a side hustle, this isn’t a hobby. This is a national security risk, and it is antithetical to the very foundations of our democracy.”

Senate passes on prediction market sites

Late last week, the Senate unanimously passed a resolution to prohibit all of its membership, as well as the staff working for them, from participating in any event contract on a prediction market site. The resolution was put forth by Ohio Senator Bennie Moreno, a Republican.

“Members and staff representing the public should never be able to gamble on wars, on economic crises, or on elections," Schumer said. "The very possibility that a member’s vote could be influenced by a bet is reason enough to slam this door shut.”

Schumer wants President Trump to sign an executive order to prevent government workers from playing prediction markets

Earlier this month, the White House issued a warning to staffers. They were informed not to use insider information to make plays on prediction market sites such as Kalshi and Polymarket.

Schumer believes the measure doesn't go far enough to curtail such activity. Employees of the White House, the House of Representatives, and other federal agencies are still legally able to participate in prediction market wagering. Many of these people hold the power to influence government decisions. They are also given access to highly classified information.

Schumer wants to see President Trump sign into law an all-encompassing federal ban. It would cover all government officials, staff members, and other employees of the executive branch. They would be prohibited from playing any event contracts on prediction market sites.

“This is a no-brainer," Schumer said. "We must never allow Congress to turn into a casino, and we shouldn’t let the White House, or the West Wing, be one either.”