When would be the best time to do it? Why, during a major political campaign!

[professor rat]

When Congress is out of session, and they can't pass legislation without calling some sort of emergency session. But it won't matter anyway, for a few weeks the organization doesn't actually have to take bets or make payments, they'll merely publicize their efforts for all to see. To reassure the public, they could announce that they'll only take bets on elected and appointed political officeholders...and anyone who tries to stop the system. And the politicians will be scurrying around, looking for political cover, trying to figure out how to NOT look scared, but at the same time each is wondering if he'll be the first to go. And all the while, the public will be loving it, laughing at the efforts of the politicos to cover their collective asses, and taking private bets among themselves on who will be the first one to die.

Prosecute the participants? On what charge? "Conspiracy to commit gambling"?

https://cryptome.org/jdb/ap.htm