DEATH BETS Act

The DEATH BETS Act would amend federal law to explicitly prohibit any Commodity Futures Trading Commission (CFTC) registered entity from listing prediction market contracts that involve, relate to, or reference terrorism, assassination, war, or an individual's death. Currently, the CFTC has discretionary authority to block such contracts if deemed contrary to the public interest, but this bill would remove that discretion and create an outright ban. The prohibition would extend to contracts that could be construed as closely correlating with a person's death.

Proponents argue the bill is necessary because prediction markets have allowed traders to wager on violent events and military conflicts, potentially creating incentives for people with access to classified information to profit from that knowledge. The legislation was introduced in response to concerns about significant trading volumes on contracts related to recent geopolitical events, including hundreds of millions of dollars wagered on the timing of military strikes. Supporters contend that betting on war and death poses national security risks and ethical concerns, while critics note that some major platforms have already voluntarily restricted such contracts.