REINING IN OUT-OF-CONTROL PREDICTION MARKETS

REINING IN OUT-OF-CONTROL PREDICTION MARKETS

Congressional Record, Volume 172 Issue 49 (Wednesday, March 18, 2026) [Congressional Record Volume 172, Number 49 (Wednesday, March 18, 2026)] [House] [Pages H2587-H2589] From the Congressional Record Online through the Government Publishing Office [ www.gpo.gov ] {time} 1800 REINING IN OUT-OF-CONTROL PREDICTION MARKETS (Under the Speaker's announced policy of January 3, 2025, Mr. Moore of Utah was recognized for 60 minutes as the designee of the majority leader.) General Leave Mr. MOORE of Utah. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on the topic of this Special Order. [[Page H2588]] The SPEAKER pro tempore (Mr. Rulli). Is there objection to the request of the gentleman from Utah? There was no objection. Mr. MOORE of Utah. Mr. Speaker, I am glad to be joined by my colleague this evening. Before I provide my remarks, I yield such time as he may consume to the gentleman from Florida (Mr. Haridopolos). Honoring Captain Ted Kimmey, Veteran of the Month Mr. HARIDOPOLOS. Mr. Speaker, I rise today to recognize Captain Ted Kimmey, who served in the United States Army and has been selected as Brevard County's Veteran of the Month. Captain Kimmey served our Nation honorably, rising to the rank of captain before his honorable discharge from the Army. Like so many veterans, Captain Kimmey answered the call to serve during a critical time in our country and handled himself with professionalism and integrity. After his military service, Captain Kimmey continued to exemplify the values of service and civic responsibilities at our home in Brevard County. Mr. Speaker, it is because of veterans like Ted Kimmey that our Nation remains strong and free. I am honored to recognize his service and thank him on behalf of a grateful nation. Honoring Veteran Dr. Jason Comerford Mr. HARIDOPOLOS. Mr. Speaker, I rise today to recognize Dr. James Comerford, a servant leader whose life reflects a deep commitment to our country, community, and public service. Dr. Comerford retired as a captain in the United States Army after serving 25 years. During his career, he served as company commander, brigade medical officer, and U.S. Army combatives instructor, earning numerous commendations along the way. Following his service, Dr. Comerford continued to serve as a college professor, collegiate chiropractor, and mentor to young students across our community, especially at-risk students. Today, he serves as the associate coach and team doctor for Palm Bay athletics and operates a chiropractic practice that provides care to veterans throughout the VA Community Care Network. Now, in his third year as chairman of the Florida Board of Chiropractic Medicine, Dr. Comerford continues to lead with integrity. He embodies the Army's core values every single day. I thank Dr. Comerford and his family for their sacrifice and service to our community. Protecting Indian River Lagoon Mr. HARIDOPOLOS. Mr. Speaker, I rise today to share important news for the families of Florida's Space Coast. Through the recent appropriations package, I was proud to help secure nearly $14 million to improve water quality projects and protect the long-term health of the Indian River Lagoon. The lagoon is one of the most biologically diverse estuaries in North America. It supports wildlife, sustains local fisheries, drives tourism, and anchors the quality of life for all of us in Brevard County. In recent years, harmful algal blooms and water quality challenges have threatened this vital ecosystem. This funding will support restoration efforts, strengthen habitat protection, and advance projects that reduce nutrient pollution that has entered the lagoon. The Indian River Lagoon is more than just a waterway. It is essential to our life on the Space Coast. I will continue working on this project and many more to make sure that our quality of life stays high. Thanks to the work of the Congress, we are able to give the funding necessary to keep this national treasure in place. Recognizing Holy Trinity's Class 2A Soccer State Championship Mr. HARIDOPOLOS. Mr. Speaker, I rise today to congratulate Holy Trinity Episcopal Academy boys' soccer team on winning the Class 2A State soccer championship. With discipline, resilience, and relentless effort, these student athletes earned the State championship as a testament to their commitment on and off the field. This victory belongs not just to the players, but also to the coaches, the families, and the community who supported them every step of the way. Championships are built through long practices, strong leadership, and a belief in one another. This is one great example of just that. The Space Coast takes pride in its student athletes, and this team has given our community a moment to celebrate. Their success represents the strength of high school athletics and the character it builds in young leaders. Mr. Speaker, I congratulate Holy Trinity on an outstanding season and a well-earned State soccer title. Supporting America's Commitment to Space Mr. HARIDOPOLOS. Mr. Speaker, I rise in support of the NASA Reauthorization Act of 2026, bipartisan legislation that affirms America's commitment to exploration, innovation, and leadership in space. The bill reauthorizes NASA's priorities for lunar and Mars missions, strengthens our presence in low Earth orbit, and encourages scientific and commercial partnerships that expand our capabilities and grow our economy. Working through the House Committee on Science, Space, and Technology, led by Dr. Babin, we have emphasized continuity, strategic investments, and maintaining the U.S. competitiveness in space, making sure we stay number one in space. As the President said: ``You can't be number one on Earth if you are number two in space.'' This legislation supports exploration and innovation, uplifts STEM education, and solidifies America's role at the forefront of discovery for generations to come. As an original cosponsor of this bill, I am proud to stand with colleagues on both sides of the aisle to advance these goals and defend our Nation's legacy of space leadership. Mr. MOORE of Utah. Mr. Speaker, I thank the gentleman from Florida. He has a clear passion for his State and the ways that he is going to support it. I have taken my young son to Cape Canaveral before, and after going on a cruise, which we were fortunate to go on, we literally went to the cape. I think, even after the cruise, Cape Canaveral that afternoon was one of the most fascinating experiences for him, a unique place. Utah's First District is actually a leader in space as well, with Thiokol of olden days, now Northrop Grumman. We do a lot of amazing work with--I think it is Houston, areas in Florida, Utah, and Huntsville, Alabama, that are big on this. Mr. Speaker, again, I thank him for his support and great work. Mr. Speaker, I thank you today for this time to be able to talk a little bit about a really important piece of legislation that I have put forward. It is a proposal for a solution to what I think many have considered out-of-control prediction markets. Just hours before the United States military strikes in Iran, more than 150 accounts made investments of over $1,000 in event contracts based on the timing of the strikes, with six traders together making over $1.2 million. In traditional betting, an individual places a wager on an outcome with odds set by a bookmaker that determines the winnings. In a prediction market, a trader buys shares in an outcome of an event. There are no odds, and share prices fluctuate based on market responses, allowing investors to turn a profit if they sell high or if their chosen outcome proves correct. Our classified military strikes should not provide an opportunity for bettors to play or profit. Underregulated prediction markets have exposed America to needless public safety and national security risks by allowing traders to invest in outcomes related to sensitive matters like terrorism, assassination, war, or elections. This nonpartisan issue has spiraled out of control, and Congress needs to pass legislation to require enforcement. Congress previously included a subtle provision in the Commodity Exchange Act that preempts State regulation on betting when it is offered through event contracts. This loophole has opened a door to gambling on anything from Taylor Swift's appearance at a Kansas City Chiefs game to when the United States might launch a strike on Cuba. Sports betting is illegal in 19 States, but prediction markets, like Kalshi or [[Page H2589]] Polymarket, avoid State regulation through this loophole. Rather than offering betting services, they sell event contracts, a legacy financial instrument with payouts based on the outcomes of real-world events. Again, this is a loophole for a legitimate financial tool that has existed for decades, maybe even centuries, but they are using this as a loophole to allow for betting in all States. In January, one investor netted over $400,000 on Nicolas Maduro's fall from power, making the timely purchase just before President Trump announced the deposed leader's capture. Prediction market Kalshi claims that, legally, this is investing, not gambling. I introduced H.R. 7840, the bipartisan Event Contract Enforcement Act, to address these concerns and put an end to reckless event-based gambling. This bill strengthens existing law, requiring the CFTC to prohibit event contracts related to terrorism, assassination, war, gaming, or criminal behavior. The bill also bans trading on election outcomes and government activities to protect our elections from manipulation and insulate the government from insider trading opportunities. This nonpartisan issue ensures event contracts can continue to serve in legitimate business interests while also protecting Americans from risk. I am looking forward to moving it through the legislative process

Referenced legislation: HR7840