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The Senate on Thursday unanimously approved a bipartisan resolution banning lawmakers and their staff from participating in prediction markets, a move aimed at preventing officials with access to sensitive information from profiting on real-world events.
The rule change, adopted by voice vote, takes effect immediately and reflects growing alarm on Capitol Hill over the rapid expansion of betting platforms tied to politics, geopolitics and economic developments.
The measure prohibits senators and aides from placing wagers on platforms that allow users to bet on outcomes such as elections, wars and financial events — activities lawmakers warned could create serious ethical conflicts.
The crackdown comes as prediction markets like Polymarket and Kalshi have gained traction, drawing scrutiny for operating in areas where regulation is limited or unclear.
Lawmakers’ concerns intensified after a recent criminal case in which a U.S. special forces soldier was charged with using classified information to bet on the capture of Nicolás Maduro. Separately, reports of unusually well-timed bets tied to U.S. policy decisions have fueled fears that insiders could exploit nonpublic information.
The resolution was introduced by Bernie Moreno and expanded through an amendment by Alex Padilla to include Senate staff.
“United States senators have no business engaging in speculative activities like prediction markets,” Moreno said.
Senate Minority Leader Chuck Schumer called the measure a “no-brainer,” warning that allowing lawmakers to bet on global events could undermine public trust.
“We must never allow Congress to turn into a casino where members … can gamble on wars or economic crises or elections,” Schumer said.
Still, some lawmakers say the rule does not go far enough. Sens. Todd Young and Elissa Slotkin have introduced legislation that would extend similar restrictions across the federal government, targeting the use of insider information in prediction markets.
The White House has already warned staff against using private information to trade on such platforms, signaling broader concern within the executive branch.
At the same time, the administration has been aligned with parts of the prediction market industry in legal disputes with states seeking to restrict the platforms. Donald Trump Jr. serves as an adviser to both Polymarket and Kalshi, underscoring the political sensitivity surrounding the issue.
The Senate’s action mirrors longstanding debates over financial ethics in government, including whether lawmakers should be allowed to trade individual stocks.
Prediction markets raise unique concerns because they allow direct bets on policy outcomes and geopolitical developments — areas where elected officials may have advance knowledge or influence.
As global instability and high-stakes policy decisions increasingly intersect with financial speculation, watchdogs warn that the potential for abuse is growing.
The Senate rule applies only to its own members and staff, leaving open the question of whether similar restrictions will be adopted by the House or imposed across the executive branch.
Lawmakers backing broader legislation say they will push for a government-wide ban, arguing that preventing insider-driven betting is essential to maintaining public trust in democratic institutions.
