Summary
Makes it against the law for anyone to place, take, or help with bets on certain events like terrorism, assassinations, war, or government actions.
What problem does this solve?
People can currently make bets on sensitive events like wars or assassinations, which could create harmful situations or be seen as wrong. This bill makes it illegal to place, accept, or help with any wagers on these types of specified events.
Who does this affect?
- Prediction market operators and users
- Online gambling companies
- Financial institutions and trading platforms
What does this bill do?
Prohibits betting on certain events
Makes it unlawful for any person to place, accept, or help with a bet on a 'specified event'.
Defines 'specified events'
Specifies that illegal bets include those on terrorism, assassinations, war, or any non-financial government action.
Updates racketeering and gambling laws
Adds the newly prohibited betting to existing federal laws against racketeering, illegal gambling businesses, and funding for unlawful internet gambling.
Bans trading of event contracts
Amends the Commodity Exchange Act to forbid registered platforms from listing or trading contracts or swaps based on the specified events.
Excludes insurance from the definition of a wager
Clarifies that a 'wager' does not include legitimate insurance policies for things like terrorism, floods, or crops.
Authorizes civil action
Allows the Attorney General to file a civil lawsuit in federal court to stop anyone who violates this law.
What is the real world impact?
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Prevents profiting from tragedy and sensitive events
Stops people from making money on terrible events like acts of terrorism, assassinations, or wars. It also prevents betting on government actions, which could create bad incentives or corruption.
When does this start?
This bill would take effect 30 days after it is signed into law.