Moulton and McGovern Demand CFTC Explain Why It Has Not Acted Against Illegal Offshore War Betting Markets

SALEM, MA- Today, Reps. Seth Moulton (MA-06) and Jim McGovern (MA-02) sent a letter to Commodity Futures Trading Commission (CFTC) Chairman Michael S. Selig demanding answers on why the agency has failed to take action against offshore prediction market platforms-such as Polymarket-that are allowing bets on U.S. military operations.

The letter was also signed by Reps. Greg Casar (TX-35), Jamie Raskin (MD-08), Dina Titus (NV-01), Gabe Amo (RI-01), and Yassamin Ansari (AZ-03).

The lawmakers argue that existing federal law allows the CFTC to pursue these contracts. CFTC Rule 40.11 explicitly prohibits the listing of contracts that "involve, relate, or reference terrorism, assassination, war, gaming, or an activity that is unlawful under any State or Federal Law." They contend that the Commission also has clear authority to pursue offshore violators-under section 2(i) of the Commodity Exchange Act-when those swap activities have a direct and significant connection to U.S. commerce.

"It is morally corrupt and completely unacceptable for these platforms to allow people to bet on whether American service members live or die," said Congressman Moulton. "This is not a game. The CFTC has the authority to stop this, and we want to know why it hasn't."

"There is something deeply sick about turning war into a gambling opportunity. We're talking about people betting on bombings, bloodshed, and military action as if human lives are just numbers on a screen," said Congressman McGovern. "These are not harmless wagers. They raise serious moral and legal concerns, especially when people may be trading on inside information about U.S. military operations. The CFTC needs to enforce the law and bring real oversight to these markets."

The letter comes amid a broader push by Congressman Moulton on prediction market oversight. Last week, Congressman Moulton condemned a Polymarket page that allowed users to bet on the rescue of downed U.S. airmen in Iran, after which Polymarket removedthe market. Congressman Moulton also separately announced a ban on prediction market participation by his congressional staff, believed to be the first such policy in Congress.

Last week, Congressman Moulton was among more than 40 members of Congress who signed a separate letter to the CFTC and the Office of Government Ethics urging guidance to prevent federal employees from profiting off insider knowledge in prediction markets.

The full letter to Chairman Selig can be read here.

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