Polymarket Removes Wagers on U.S. Service Member Rescue Mission in Iran

Polymarket has removed a forum related to the rescue mission of U.S. military servicemembers amid political pressure, the latest sign of mounting scrutiny around prediction markets. Rep. Seth Moulton, D-Mass., decried the Polymarket page that allowed users to bet on which day the U.S. would confirm the rescue of the two airmen after an American F-15E fighter jet was shot down over Iran. The lawmaker called the page 'DISGUSTING' in an X post, emphasizing the human cost of such wagers. In a response on X, Polymarket said it took the market down immediately as it does not meet its integrity standards, adding that it is investigating how the market slipped through its internal safeguards. Polymarket also stated it does not make money or charge any fees on any geopolitical markets. U.S. and Iranian military forces are searching for a missing American airman after its F-15E fighter jet was shot down over Iran on Friday. One crew member has been rescued, but another is not accounted for. Moulton last month banned his staff from using prediction market platforms like Polymarket or Kalshi, a policy he claims is the first of its kind in Congress. He argued that constituents should trust lawmakers to make decisions based on what is right for the nation, not on how bets might turn out. Moulton also linked Donald Trump Jr., the son of President Donald Trump, to an investment in Polymarket, suggesting potential access to non-public intelligence. The Massachusetts lawmaker is part of a growing chorus of voices in Washington calling for stronger oversight of these betting platforms as interest swells. A group of congressional Democrats introduced legislation late last month that would bar prediction markets from allowing wagers on elections, war, and government actions, in addition to sports. In February, six Democratic senators urged the Commodity Futures Trading Commission to clarify that it will prohibit any contracts related to an individual's death, citing dangerous national security risks. The CFTC announced lawsuits against three states over efforts to circumvent its regulatory authority over prediction markets.