Many people made huge amounts of money betting on the war in Iran after the United States and Israel launched major military strikes. Following the announcement, gamblers rushed to prediction markets like Polymarket and Kalshi, trading hundreds of millions of dollars on when the attack would happen and whether Iran’s leader would be removed from power.

Reports say six new accounts earned about $1.2 million by correctly predicting the exact day of the attack. Since most of these accounts were created just hours before the strikes, many people questioned whether some bettors had advance knowledge. Millions more were placed on possible regime change and leadership outcomes.

US Senator Chris Murphy criticized the situation, calling it “insane this is legal,” and said he plans to propose a ban on this type of betting. Representative Mike Levin also demanded more transparency, warning that prediction markets should not allow people to profit from inside information about military action.

These platforms operate in a legal grey area. While direct betting on war and violence is generally restricted in the US, online prediction markets are not regulated like traditional gambling. Kalshi defended its policies, while Polymarket has not publicly commented. READ MORE BELOW