Polymarket has canceled a betting market related to the rescue of U.S. service members in Iran after facing backlash and criticism from lawmakers this weekend.
The market allows users to place bets on when the United States will confirm the rescue of two pilots after an F-15E fighter jet was shot down over Iran. The crew has now been rescued.
Rep. Seth Moulton, a Democrat from Massachusetts, criticized the listing in a post on X, calling it “disgusting” and arguing it reduced the military relief operation to a financial transaction.
Moulton has taken a hard line against prediction markets, recently banning his employees from platforms such as Polymarket and Kalshi over concerns that financial incentives could influence policy decisions.
A Polymarket spokesperson said the listing did not meet integrity standards and was removed shortly after being posted. The company added that it was reviewing how the market passes internal safeguards.
The incident comes as prediction markets face growing pressure in Washington. A group of congressional Democrats introduced legislation last month that would ban contracts related to elections, wars and government operations.
Separately, several senators urged the Commodity Futures Trading Commission to ban markets related to personal deaths, citing national security concerns.
Regulators are also exercising authority over the industry. The U.S. Commodity Futures Trading Commission (CFTC) said this week it was filing lawsuits against three states, accusing them of trying to circumvent federal regulations on prediction markets.
Industry scrutiny extends beyond politics. The NFL has asked operators to avoid offering contracts it deems objectionable or susceptible to manipulation, including bets related to officiating decisions or events that are known in advance.
Still, the market is expanding. Kalshi received a license to offer margin trading to institutional investors late last month, and new players are entering the market. Among them is JPMorgan Chase & Co., whose CEO Jamie Dimon has said he is looking to join the fray.
