Polymarket Faces Backlash After Political Bets on Iran War and Rescue Missions

Polymarket traders placed $115 million on U.S. forces entering Iran, giving it a 90% probability.

“Prediction market traders on Polymarket and Kalshi have placed hundreds of millions of dollars in bets on the outcome of the 2026 Iran War, with U”

Bitcoin News

The markets covered five categories including military timelines and leadership succession.

Bitcoin News

Kalshi's Strait of Hormuz closure market held $7.3 million in volume.

Leadership markets moved fast after Khamenei was killed, with Mojtaba given 64% odds.

Polymarket faced backlash for hosting a market betting on rescue confirmation of downed airmen.

Democratic Congressman Seth Moulton called the page disgusting.

CNBC

Polymarket took the market down immediately, acknowledging it did not meet integrity standards.

Moulton said it was taken down because they called them out.

The incident sparked questions over how prediction markets should be regulated.

“Polymarket, a popular prediction market page, has taken down a forum linked to the rescue mission of US servicemembers amid political backlash”

Mint

Moulton said the CFTC has authority but is doing nothing.

He banned his staff from using platforms like Polymarket or Kalshi.

While prediction markets can aggregate information, ethical implications are coming under scrutiny.