U.S. Senator Richard Blumenthal of Connecticut has introduced legislation to reinforce states’ rights to regulate prediction markets under their gambling laws.
It’s in response to the federal Commodity Futures Trading Commission’s attempt to stop Connecticut and other states from regulating prediction markets, he said at a joint news briefing with Connecticut Attorney General William Tong in Hartford on Friday.
Blumenthal said it is needed because unregulated markets are allegedly making huge profits from predicting American foreign policy, including the Iran War ceasefire, allegedly from government insiders.
“Officials who know national security facts and then disclose them improperly to the point that the White House has warned its own employees about it,” he said.
Tong welcomed Blumenthal’s move.
“State law does govern these forms of contracts, this form of gaming and there’s no preemption,” Tong said.
Blumenthal’s legislation would ban prediction market listings related to war, death and military action. It also requires age verification and bans prediction markets from advertising to underage individuals.
