Blumenthal Steps Up Lawmaker Opposition to Prediction Markets

Democratic Senator Richard Blumenthal introduced legislation Wednesday targeting prediction markets, the latest effort by lawmakers to crack down on the fast-growing industry over concerns about insider trading, violent-event wagers and consumer protections.

The proposal — called the Prediction Markets Security and Integrity Act — would bar traders from participating in markets where they have a conflict of interest and ban certain bets tied to violent acts or other harmful outcomes. The measure faces significant obstacles in the Republican-controlled US Senate, where it would need bipartisan support to pass.

The measure “puts guardrails on this out-of-control industry. It bans dangerous and ...