Polymarket has 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, a Democrat from Massachusetts, criticized the listing in a post on X, calling it “disgusting” and arguing that it reduced a military rescue effort to a financial bargain.
Moulton has taken a hard line on prediction markets, recently banning its staff from using platforms such as Polymarket and Kalshi over concerns that financial incentives could influence political decisions.
A Polymarket spokesman said the listing did not meet its integrity standards, which was removed shortly after it appeared. The company added that it is reviewing how the market has passed internal security measures.
The incident comes as prediction markets face mounting pressure in Washington. A group of congressional Democrats introduced legislation last month that would ban contracts tied to elections, war and government actions.
Several senators have separately called on the Commodity Futures Trading Commission to ban markets linked to individual deaths, citing national security concerns.
Regulators also assert authority over the sector. The CFTC said this week it was filing lawsuits against three states over efforts it believes attempt to circumvent federal oversight of prediction markets.
Industry control has expanded beyond politics. The NFL has asked operators to avoid offering contracts they deem offensive or open to manipulation, including bets tied to fixing decisions or events that are known in advance.
Still, the market is expanding. Late last month, Kalshi secured 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 it looks set to enter the fray.
