Senate Minority Leader Chuck Schumer has called on President Donald Trump and his administration to extend a recent Senate ban on prediction market trading to the White House and the broader federal government, escalating a growing political battle over the fast-expanding industry.
The appeal comes just days after the Senate unanimously voted to prohibit senators and their staff from using prediction markets such as Polymarket and Kalshi. The move was driven by rising concerns over potential insider trading and conflicts of interest involving event-based betting on politics, war, and economic outcomes.
Speaking on Sunday, Schumer warned that allowing public officials to trade on such platforms risked turning government service into a financial opportunity. “We must never allow Congress to turn into a casino, and we shouldn’t let the White House, or the West Wing, be one either,” he said.
Schumer urged the House of Representatives to adopt similar restrictions and called for a sweeping federal rule that would bar executive branch employees from participating in prediction markets altogether. He argued that officials with access to sensitive information should never be able to profit from events they may influence or foresee.
The Senate’s action follows a series of high-profile controversies involving prediction markets. Authorities have investigated cases of alleged insider trading, including a U.S. special forces soldier accused of using classified intelligence to profit from trades linked to a military operation abroad. Platforms have also faced scrutiny after reports of unusually well-timed bets on geopolitical developments and ceasefire negotiations.
Prediction markets allow users to place wagers on real-world outcomes such as elections, conflicts, and economic indicators. While supporters describe them as forecasting tools, critics increasingly compare them to gambling systems vulnerable to manipulation and insider advantage. Lawmakers from both parties have introduced competing bills in recent months aimed at tightening oversight or restricting certain types of contracts, particularly those involving war or political violence.
Schumer’s proposal adds a new dimension by targeting the executive branch, where concerns have also been raised about potential conflicts involving officials and their families. Some lawmakers argue that the industry’s rapid growth has outpaced regulation, creating opportunities for misuse of confidential information.
The White House has previously cautioned staff against using non-public information for financial gain, while some officials have acknowledged that clearer rules may be needed. However, prediction market firms maintain that they already enforce internal safeguards and compliance systems.
As Congress moves toward broader regulation, Schumer’s call signals that debate over prediction markets is expanding beyond Capitol Hill, raising questions about how far government restrictions should extend into emerging financial technologies.
