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GOP Sweep Still Seen As Most Likely Outcome In Betting Markets

US

Political betting markets continue to show a heavy implied probability that the Republicans take control of both the Senate and House of Representatives in the 8 November midterm elections. Data from Smarkets assigns a 64.9% implied probability that the GOP wins a majority in both chambers, with a Republican House-Democratic Senate scenario the second most likely outcome according to bettors with a 27.8% implied probability.

  • The 'tail risk' scenario of the Democrats retaining control of both chambers has an implied probability of 8.3%, an outcome assessed in the MNI Market team's 2022 Midterm Asset Implication article, which can be found here:

Midterms2022AssetImplications.pdf

Chart 1. Betting Market Implied Probabilities of Midterm Election Outcomes, %

Source: Smarkets

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