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Trump announces Pam Bondi of FL as new attorney general pick, hours after Matt Gaetz withdraws; House passes bill targeting nonprofits in NY and nation; NM researcher studies why pedestrian and bicyclist deaths are on the rise; Researchers link better outcomes to MN adoption reforms.

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Trump has a new pick for Attorney General, his incoming "border czar" warns local Democratic officials not to impede mass deportation, and the House passes legislation that could target any nonprofit group accused of supporting terrorism.

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The CDC has a new plan to improve the health of rural Americans, updated data could better prepare folks for flash floods like those that devastated Appalachia, and Native American Tribes could play a key role in the nation's energy future.

Feds Consider Whether to Allow Betting on Election Outcomes

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Monday, August 28, 2023   

A proposal to allow betting on which political party will control Congress is drawing opposition from pro-democracy groups and from a coalition of progressive senators.

The New York trading company Kalshi has asked the Commodity Futures Trading Commission for approval to offer derivatives trading on so-called "event contracts," specifically, on control of Congress.

Stephen Spaulding, vice president of policy for the nonprofit Common Cause, said gambling on elections is bad for democracy.

"You can imagine wealthy gamblers could make significant money by exploiting disinformation to influence an electoral outcome that would protect the bettors' bottom line," Spaulding pointed out. "This again opens up a significant risk to the perception that the winners and losers of an election are not determined by voters, but by those who stand to gain financially."

Backers of the proposal say it would allow companies to hedge against certain outcomes, limiting risk. Eliezer Mishory, Kalshi's chief regulatory officer, has argued betting on elections is already allowed overseas, and suggests this proposal would give the federal government oversight powers.

Spaulding noted the "Citizens United" Supreme Court decision allowed companies to spend unlimited money on elections, and called betting on elections a "profound threat to democracy."

"You can imagine a situation where an entity places an enormous wager on the outcome of an election, and also funnels resources through Super PACs or other 'dark money' vehicles to influence the outcome of an election," Spaulding explained. "That is inherently, we think, anti-democratic."

Both Common Cause and some U.S. senators, including California's Dianne Feinstein, submitted letters of opposition during the public comment period, which ended in July. The Commodity Futures Trading Commission is expected to make a decision by Sept. 21.

Support for this reporting was provided by The Carnegie Corporation of New York.


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