A House Bill was recently filed to ban election futures trading, a topic that came to the forefront in the last election when trading platforms won a legal battle to accept election future contracts.
Seeking to Close the Loophole
If the House bill filed by US Representatives Andrea Salinas (D-OR) and Jamie Raskin (D-MD) gains passage through the House and Senate, the legal loophole that allowed trading platforms like Kalshi to offer election betting futures will be closed permanently.
The Ban Gambling on Elections Act is similar to a bill filed by Senator Jeff Merkley (D-OR) earlier this year and will prohibit futures contracts on political races. US sportsbooks are already barred from offering political or entertainment props and just about anything else outside of sports.
“Betting on elections degrades them from an investment in leadership to a profit-maximizing game,” Senator Merkley said in a statement. “In addition, this practice is corrupt since those betting can influence the outcome by funding late-cycle smear campaigns. It’s like betting on a baseball game when you control the umpire.
“It’s a great step forward to have House leaders like Rep. Raskin and Congresswoman Salinas take on this fight.”
The bill will tweak the Commodity Exchange Act by adding 60 powerful words that will negate any legal debate the trading platforms have to offer what amounts to political wagering on their sites. Election betting will be outlawed should the bill pass.
“We cannot play roulette with our democracy by allowing this kind of wagering without a thorough accounting of the potential consequences,” Salinas stated.
Raskin declared, “With distrust in our electoral system at an all-time high, we must crack down on gambling in all US elections. Our democracy demands reliable and transparent processes to cast ballots and tally results, not a horserace clouded by gambling odds and bets placed.
“I am proud to go all-in with Congresswoman Salinas and Senator Merkley in calling on Congress to ante up and pass this commonsense legislation.”
Feds Discuss Sports Betting Legislation
In another piece of federal legislative discussion regarding responsible gambling, the debate on federal intervention in what has been the exclusive province of state control continues to rage. Representative Salinas has vowed to continue her fight to ensure preventative measures and guardrails are in place for those struggling with gambling addiction.
“I will also continue working to provide more federal resources for gambling addiction treatment and research,” Salinas said. “While sports betting and online gambling have become permanent forms of American entertainment, we must acknowledge and help mitigate the harm caused by related addictions.”
Speaking of which, the Supporting Affordability and Fairness with Every Bet, or the SAFE Bet Act, is sponsored by two Democratic lawmakers, U.S. Congressman Paul Tonko of New York and Senator Richard Blumenthal of Connecticut.
The SAFE Bet Act is described as “the first comprehensive legislation that would address the public health implications inherent in the widespread legalization of sports betting.”
“State regulation is faint-hearted and half-baked. That’s why we need a national standard. Not to ban gambling but simply to take back control over an industry that is out of bounds,” Senator Blumenthal said, discussing the need for the proposed bill.
The American Gaming Association vehemently disagrees and believes state regulatory bodies have done an admirable job and federal intervention is unwelcome.
