Polymarket removed a betting market linked to the rescue of US service members in Iran, following intense backlash and criticism from lawmakers this weekend.
The market allowed users to bet on when the United States would confirm the rescue of two airmen after an F-15E fighter jet was shot down over Iran. The crew members have since been rescued.
Rep. Seth Moulton, D-Mass., criticized the inclusion in a post on X, calling it “disgusting” and arguing that it reduced a military rescue effort to a financial deal.
Moulton has taken a hard line on prediction markets and recently banned his staff from using platforms such as Polymarket and Kalshi over fears that financial incentives could influence political decisions.
A Polymarket spokesperson said the listing did not meet its integrity standards and was removed shortly after it appeared. The company added that it is reviewing how the market passed internal safeguards.
The incident comes as prediction markets face growing pressure in Washington. Last month, a group of congressional Democrats introduced legislation that would ban contracts tied to elections, wars and government actions.
Separately, several senators have urged the Commodity Futures Trading Commission to ban markets linked to individual deaths, citing national security concerns.
Regulators are also asserting their authority over the sector. The CFTC said this week that it filed lawsuits against three states for efforts it believes attempt to circumvent federal oversight of prediction markets.
Scrutiny of the industry has expanded beyond politics. The NFL has asked operators to avoid offering contracts that it considers objectionable or open to manipulation, including bets tied to referee decisions or known events in advance.
Still, the market is expanding. Kalshi late last month obtained a license to offer margin trading to institutional investors, as new players enter the market. Among them is JPMorgan, whose chief executive, Jamie Dimon, has signaled that he is looking to enter the fray.
