Betting on the U.S. election, or any election, varies in legality depending on the jurisdiction. In the United States, it is illegal to bet on elections at the federal level under the Illegal Gambling Businesses Act of 1955, which prohibits betting on the outcome of any election.
However, some forms of political betting do occur through legal means, typically in the form of prediction markets or futures markets. These markets are often facilitated by online platforms that are based outside of the United States or on platforms that operate in a legal gray area. One of the most well-known platforms for political betting is the Iowa Electronic Markets (IEM), which is run by the University of Iowa and is considered a research project. The IEM operates with explicit permission from the Commodity Futures Trading Commission (CFTC).
Additionally, many people engage in informal betting with friends or colleagues, which is not regulated and typically falls into a legal gray area.
It’s important to note that while some prediction markets may be legal, they are often subject to strict regulations and are not the same as traditional sports betting. Always be aware of the laws in your jurisdiction before participating in any form of betting or gambling, including political betting.