Polymarket has removed a betting market linked to the rescue of U.S. military personnel in Iran, after intense backlash and criticism from lawmakers over the 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 Massachusetts Democrat, criticized the listing in an article on X, calling it “disgusting” and arguing that it reduced a military rescue effort to a financial exchange.
Moulton has taken a hard line on prediction markets, recently banning his team from using platforms such as Polymarket and Kalshi over concerns that financial incentives could influence policy decisions.
A Polymarket spokesperson said the listing did not meet its integrity standards, being removed shortly after its publication. The company added that it is reviewing how the market has adopted internal safeguards.
The incident comes as prediction markets face growing pressure in Washington. A group of congressional Democrats introduced legislation last month banning contracts related to elections, war and government actions.
Separately, several senators urged the Commodity Futures Trading Commission to ban markets tied to individual deaths, citing national security concerns.
Regulators also assert their authority over the sector. The CFTC said this week it has filed lawsuits against three states for what it says were attempts to circumvent federal oversight of prediction markets.
Surveillance of the industry has extended beyond politics. The NFL has asked operators to avoid offering contracts that it considers objectionable or likely to be manipulated, including bets tied to officiating decisions or events known in advance.
However, the market is growing. Kalshi last month obtained a license to offer margin trading to institutional investors, as new players enter the market. Among them is JPMorgan, whose CEO Jamie Dimon has indicated he is looking to enter the fray.
