Speculating on death? The United States wants to end these controversial markets
Prediction markets, where people bet on future events, are causing a heated controversy in the United States. A new law, the “Death Bets Act”, proposes to ban bets on war, attacks, and disasters. Decoding a debate that pits economic freedom against ethics.
In brief
- The Death Bets Act proposes to ban bets on war, death, and disasters, considered immoral and dangerous to U.S. security.
- Platforms like Polymarket and Bubblemaps have already sparked controversy by allowing bets on tragic or sensitive events.
- Between necessary regulation and fear of excessive censorship, the Death Bets Act revives the question of limits of prediction markets.
Death Bets Act: a legislative response to the excesses of prediction markets in the United States
American Democrats Mike Levin and Adam Schiff have introduced a bill to regulate prediction markets. Named “Death Bets Act”, this text aims to ban bets on sensitive events such as wars, assassinations, or terrorist attacks. According to its initiators, these markets create perverse incentives, allowing individuals to profit from human tragedies.
This proposal comes in a context where the Commodity Futures Trading Commission (CFTC) already has discretionary power to block certain contracts. However, lawmakers believe this flexibility is insufficient. Indeed, the “Death Bets Act” seeks to make these bans automatic, removing any legal ambiguity.
United States: prediction markets are risks to national security
Prediction markets pose major ethical challenges. Indeed, by allowing bets on tragic events, they risk trivializing human suffering and encouraging opportunistic behavior. For example, individuals could be incentivized to spread false information to influence prices and make profits.
Legally, these markets conflict with local laws. In this regard, states such as Kansas and Ohio have already challenged their legitimacy, arguing they violate gambling regulations. Lawsuits are multiplying, notably against platforms like Polymarket, accused of circumventing existing laws.
Crypto prediction: a healthier alternative or another speculative trap?
Bets on cryptos like bitcoin are often seen as less controversial than those related to war or death. Yet their extreme volatility makes them a risky field, where thousands of investors lose fortunes. Unlike tragic events, these are based on financial assets. Although legal, they remain a dangerous game where price manipulation can skew results.
The “Death Bets Act” marks a turning point in the regulation of prediction markets in the United States. While lawmakers seek to regulate these controversial platforms, a problem arises… Should these bets be banned to protect ethics and security, or do they risk depriving the public of a valuable anticipation tool?
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The world is evolving and adaptation is the best weapon to survive in this undulating universe. Originally a crypto community manager, I am interested in anything that is directly or indirectly related to blockchain and its derivatives. To share my experience and promote a field that I am passionate about, nothing is better than writing informative and relaxed articles.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.