A New Safety Push Puts Prediction Markets Under Scrutiny
Prediction markets face a new safety campaign as lawmakers seek hearings, consumer protections and tighter controls on contracts and operators. The post A New Safety Push Puts Prediction Markets Under Scrutiny appeared first on ReadWrite .
Sen. Richard Blumenthal (D-CT) and Rep. Paul Tonko (D-NY) are intensifying a congressional campaign to mandate federal oversight and consumer protections for the rapidly expanding prediction market industry. The lawmakers joined forces with public health advocates, the Public Health Advocacy Institute (PHAI), and Families and Friends of Gamblers (FFOG), to unveil "Truth and Integrity: The Movement for Gambling Reform."
The initiative targets three key demands: congressional hearings, federal safety standards, and enhanced state enforcement, as well as public pressure on operators to adjust customer treatment methods. Blumenthal claims the gambling industry exploits vulnerable users for profit, while Tonko aims to make the inherently addictive product demonstrably safer.
They are backing these calls with two legislative proposals: the SAFE Bet Act, which would impose deposit limits and wager caps, and the Prediction Markets Security and Integrity Act (S.4060), which would restrict contracts involving war, death, or military conflict, require insider-trading safeguards, and shift oversight from the CFTC to individual states.
Despite the push, the bills have not progressed beyond committee referral, raising questions about whether enactment is imminent or merely another round of regulatory scrutiny.
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