BETS OFF Act
- Bill Number
- H.R. 7955
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2026-03-17: Referred to the Committee on the Judiciary, and in addition to the Committees on Agriculture, and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Last Updated
- 2026-05-08T17:24:15Z
AI-Generated Summary
H.R. 7955: Banning Event Trading on Sensitive Operations and Federal Functions Act (BETS OFF Act)
Purpose
The legislation aims to ban all betting, or "wagers," on high-risk or sensitive events—such as terrorism, assassinations, wars, or certain government-controlled outcomes—to prevent manipulation, insider advantages, or threats to national security and public trust.
Key Provisions
- Defined Terms:
- Specified event: Includes acts of terrorism, assassinations, wars, or non-financial events that involve government actions, are fully controlled by one person, or are known in advance by someone.
- Wager: Betting something of value on an event's outcome (excludes legitimate insurance policies under state, federal, or foreign law).
- Core Ban: Makes it illegal for any person to place, accept, or help with a wager on a specified event.
- Enforcement: The U.S. Attorney General can file lawsuits in federal court for court orders (injunctions) to stop violations.
- Effective Date: Takes effect 30 days after becoming law.
- Severability: If any part is ruled invalid, the rest remains in force.
Significant Changes to Existing Law
- Amends federal anti-gambling and racketeering laws (18 U.S.C. §§ 1952, 1955) to explicitly include wagers on specified events as illegal gambling.
- Updates the Unlawful Internet Gambling Enforcement Act (31 U.S.C. § 5362) to cover these wagers online, regardless of other exemptions.
- Modifies the Commodity Exchange Act (7 U.S.C. § 7a-2) to prohibit exchanges or clearinghouses from listing, trading, or clearing contracts, swaps, or related products based on specified events (e.g., no "prediction markets" for these).
Potential Impacts
- Government Agencies: Increases workload for the Department of Justice (enforcement via civil suits) and Commodity Futures Trading Commission (CFTC, oversight of derivatives markets).
- Citizens and Businesses: Shuts down betting platforms, apps, or markets offering wagers on these events; individuals face civil penalties (no criminal penalties specified directly, but ties into existing gambling crimes).
- Financial Markets: Blocks "event contracts" or prediction markets on sensitive topics, potentially reducing speculative trading but limiting tools for hedging non-financial risks.
- International Relations: Could affect foreign betting sites or reinsurance if involving U.S. persons or markets.
Main Stakeholders Affected
- Betting Operators and Platforms: Online sportsbooks, prediction markets (e.g., Kalshi or Polymarket), casinos—prohibited from offering these wagers.
- Individuals: Bettors, traders, or insiders who might exploit foreknowledge.
- Government Entities: DOJ (enforcement), CFTC (market regulation), Congress (via referred committees: Judiciary, Agriculture, Financial Services).
- Insurers and Financial Firms: Protected by carve-outs for legitimate insurance but restricted from wager-like products.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens existing gambling frameworks by targeting "event trading" without creating new crimes—relies on civil injunctions initially, but links to criminal statutes (e.g., racketeering). Excludes insurance to avoid conflicts with established programs like flood or terrorism insurance.
- Constitutional: May face challenges on free speech or contract rights for prediction markets, but aligns with long-standing federal limits on gambling (no fundamental rights implicated).
- Political: Introduced by Reps. Casar, Amo, Ansari, and Tlaib (March 17, 2026); referred to multiple committees, signaling bipartisan or cross-issue review; severability clause guards against partial invalidation.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (7)
Rep. Amo, Gabe [D-RI-1], Rep. Ansari, Yassamin [D-AZ-3], Rep. Tlaib, Rashida [D-MI-12], Rep. Magaziner, Seth [D-RI-2], Rep. Moskowitz, Jared [D-FL-23], Rep. Carson, André [D-IN-7], Rep. Foushee, Valerie P. [D-NC-4]
Recent Actions
- 2026-03-17: Referred to the Committee on the Judiciary, and in addition to the Committees on Agriculture, and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2026-03-17: Referred to the Committee on the Judiciary, and in addition to the Committees on Agriculture, and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2026-03-17: Referred to the Committee on the Judiciary, and in addition to the Committees on Agriculture, and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2026-03-17: Introduced in House
- 2026-03-17: Introduced in House
Bill Versions
- Banning Event Trading on Sensitive Operations and Federal Functions Act — issued 2026-03-17 — PDF (7 pages)