Trump's Longstanding Ties to Gambling Now Shift Toward Prediction Markets
President Donald Trump expressed his discontent with the growing fascination surrounding gambling and prediction markets during a press briefing on Thursday, yet his administration has actively engaged with this trend, as revealed by a recent review.
"The whole world, unfortunately, has become somewhat of a casino," Trump remarked in the Oval Office, reflecting on the global betting landscape. "I was never much in favor of it. I don’t like it conceptually, but it is what it is now," he added, addressing the lucrative bets placed on events like the Iran war.
His comments came amid a discussion about a U.S. special forces soldier facing criminal charges for allegedly using insider knowledge from a raid to profit nearly $400,000 on Polymarket. Trump seemed to downplay the gravity of the situation, likening it to the infamous case of Pete Rose, who was banned from baseball for betting on his own team.
"That’s like Pete Rose betting on his own team," Trump said regarding the soldier, Gannon Ken Van Dyke. "If he bet against his team, that would be no good, but he bet on his own team. I’ll look into it," he concluded.
In a notable pivot, Trump Media announced plans to introduce prediction markets on its Truth Social platform through a partnership with Crypto.com. Before taking office, Trump placed his majority shares in a revocable trust managed by his eldest son, Donald Trump Jr.
White House spokesman Davis Ingle emphasized that Trump prioritizes a robust stock market for all while advocating for restrictions on Congress members using nonpublic information for personal gain. "The only special interest that will ever guide President Trump is the best interest of the American people," Ingle stated.
The upcoming prediction market feature is set to undergo beta testing soon, with plans for a full launch in the U.S. and subsequent global rollout once all requirements are satisfied.
In response to inquiries about Trump's business dealings, White House counsel David Warrington asserted that the president's actions remain ethical and transparent. "President Trump performs his constitutional duties in an ethically sound manner," Warrington said.
Meanwhile, Trump Jr. has ties to Polymarket and serves as a strategic adviser to its competitor Kalshi. A representative clarified that he does not engage with the federal government regarding his investments or influence administration policies related to prediction markets.
Trump's connection to gambling predates his presidency; he owned several casinos in Atlantic City during the 1980s and later criticized competitors in the industry. Despite his casinos facing bankruptcy, he supported online gaming legislation in 2011, stating that the U.S. was missing out compared to other countries.
During his second term, Trump's administration has taken steps to bolster online betting markets, including reversing restrictions on Polymarket's operations initiated under the previous administration.
Recently, the Justice Department and the Commodity Futures Trading Commission (CFTC) filed lawsuits against Connecticut, Arizona, and Illinois over their attempts to regulate prediction market sites, asserting that only the CFTC holds regulatory authority over these platforms.
CFTC Chairman Michael S. Selig reaffirmed the agency's commitment to protecting market participants from excessive state regulation. In contrast, Connecticut Attorney General William Tong vowed to defend state consumer protection laws against what he termed illegal gambling practices.
Selig has previously stated that the CFTC aims to support responsible development within prediction markets while ensuring oversight against insider trading and fraud. The agency has also issued guidance to remind platforms of their responsibilities in this regard.
Polymarket CEO Shayne Coplan highlighted their proactive cooperation with authorities regarding suspicious activities on their marketplace, emphasizing transparency and compliance as key components of their operations.
