Bill bans campaigns from gambling donor funds on prediction markets

What does this do?

HR 8912 makes it illegal for political campaigns to use donated funds to place bets on prediction markets, which are platforms where people wager real money on future events like election outcomes. Standard low-risk financial activities such as bank accounts and mutual fund investments would still be permitted. The Federal Election Commission would write specific rules defining what is and is not allowed under the law.

Who does it affect?

The bill directly applies to political candidates, their official campaign committees, and other political committees that raise and spend money under federal election law. Campaign staff and treasurers who manage those funds could also be affected.

Why does it matter?

Violations could result in civil fines through the FEC or criminal prosecution referred to the Justice Department. Knowingly and willfully breaking the law could carry criminal penalties including up to five years in prison.

What does it cost, and who pays?

• Civil fines possible for violations
• Up to 5 years in prison for willful violations
• FEC enforces, DOJ may prosecute