A new bill introduced in the U.S. House seeks to ban election wagering, arguing that the activity incentivizes bad actors to interfere with elections. The push comes after online wagering operators legally accepted millions in bets on the 2024 election.
The effort is spearheaded by two members of Oregon’s congressional delegation and a Maryland representative. U.S. Reps. Andrea Salinas, D-Oregon, and Jamie Raskin, D-Maryland, introduced the bill Wednesday, seeking to prohibit any election wagering.
The Ban Gambling on Elections Act would add just 60 words to the Commodity Exchange Act, a 1936 law that regulates commodity trading, to specify that no betting is allowed on any elections. The legislation mirrors a bill introduced by Sen. Jeff Merkley, D-Oregon, earlier this year.
The new bill’s prospects for passage are unclear, with Congress in a lame-duck session and heading into the holiday break. Nevertheless, proponents are set to fight for passage, with Raskin, who House Democrats selected as their ranking member on the Judiciary Committee, stating Congress needs to crack down on political gambling.
Political gambling draws controversy
While election betting was a common practice during the late 19th and early 20th centuries, it declined in popularity and was widely banned as states passed gambling laws. However, it is now seeing a resurgence in popularity, drawing controversy.
Online betting markets brought the practice back in recent years, amid growing demand from bettors. While initially bets could only legally be placed by people who aren’t U.S. citizens, that changed in October when a federal appeals court allowed online betting company Kalshi to open an election betting market.
Kalshi and other companies like ForecastEx accepted more than $900 million in bets on the presidential, Senate, and House races, according to a November report from MarketWatch. This has prompted debates on the potential risks of this practice.
“Betting on elections degrades them from an investment in leadership to a profit-maximizing game,” Merkley said. “This practice is corrupt since those betting can influence the outcome by funding late-cycle smear campaigns. It’s a great step forward to have House leaders like Rep. Raskin and Congresswoman Salinas take on this fight.”
The effort to prohibit election wagering is also backed by Better Markets, a nonprofit organization that pushes for stricter financial regulations. Co-founder and CEO Dennis Kelleher said gambling has no place in elections and that the Commodity Futures Trading Commission doesn’t have the expertise to handle election gambling.
“Betting hundreds of millions if not billions of dollars on elections will incentivize manipulation and interference while undermining Americans’ faith and trust in elections,” Kelleher said, as reported by Oregon Capital Chronicle.
“Gamblers also should not be allowed to unleash gambling on American elections by sneaking it in through the back door of the CFTC, which has no expertise, experience, or ability to regulate or police election gambling.”
Original article: https://www.yogonet.com/international/news/2024/12/19/89112-bill-introduced-in-us-house-seeking-to-ban-election-betting-amid-political-interference-concerns
