In a move that could have far-reaching implications for the integrity of U.S. elections, Better Markets, a non-profit organization dedicated to promoting transparency and accountability in the financial markets, has come out in support of the Commodity Futures Trading Commission’s (CFTC) proposed ban on election gambling.
The CFTC’s proposal, which was announced earlier this week, seeks to prohibit the trading of prediction markets on the outcomes of political elections. These prediction markets, also known as election gambling or political betting, allow individuals to bet on the winners of various elections, ranging from local races to presidential contests.
While prediction markets have become increasingly popular in recent years, with websites like PredictIt and Betfair offering a platform for individuals to wager on election outcomes, critics argue that these markets can be easily manipulated and present a serious risk of election interference.
According to Better Markets, allowing individuals to bet on election outcomes creates a perverse incentive for bad actors to influence the outcome of an election in their favor. By placing large bets on a particular candidate or party, these individuals can not only sway public opinion but also potentially tamper with the electoral process itself, casting doubt on the legitimacy of the results.
“Prediction markets have the potential to undermine the very foundation of our democracy,” said Better Markets CEO Dennis Kelleher in a statement. “By incentivizing individuals to manipulate election outcomes for personal gain, these markets pose a serious threat to the integrity of our electoral system.”
In addition to concerns about election interference, Better Markets also points to the potential for market manipulation and insider trading in prediction markets. Without proper oversight and regulation, individuals with inside information or access to privileged data could exploit these markets for their own financial gain, further eroding the public’s trust in the electoral process.
In light of these concerns, Better Markets has called on the CFTC to take swift action to implement the proposed ban on election gambling. The organization believes that such a ban is necessary to safeguard the integrity of U.S. elections, protect against potential manipulation, and uphold the principles of fairness and transparency in the electoral process.
While the CFTC’s proposal is still subject to public comment and review, Better Markets remains optimistic that regulators will ultimately take decisive action to address the risks posed by election gambling. With the integrity of U.S. elections at stake, the organization is committed to working with policymakers and stakeholders to ensure that prediction markets are not used as a tool for election interference or manipulation.
