A new federal bill called the STOP Corrupt Bets Act aims to prohibit prediction market wagers on sports, elections, armed conflict, and government actions, escalating the federal-state jurisdictional fight over the fast-growing industry.
A new federal bill would essentially outlaw what Kalshi and Polymarket have built — and it’s drawing serious attention in Congress as state-level battles multiply.
The chair of the Nevada Gaming Control Board said prediction markets represent an end run around state oversight — and Louisiana’s top regulator was right there with him.
A Citizens JMP Securities study found prediction market combo users lose more on average than parlay bettors at licensed sportsbooks — adding a consumer protection dimension to the regulatory battle over Kalshi and Polymarket.
The American Gaming Association says prediction market platforms are siphoning more than $1 billion in annual tax revenue away from states, intensifying the industry’s push to rein in CFTC-regulated competitors like Kalshi and Polymarket.
Kalshi is challenging Minnesota’s new prediction market felony ban in federal court, arguing the CFTC-regulated platform cannot be subject to state gambling law — a case that could set the terms for prediction markets nationwide.
New research reveals that members of Congress from nine states currently fighting Kalshi in court have accepted more than $89,000 in campaign contributions from Kalshi founders and executives.
Spain’s government has taken direct aim at two of the world’s most prominent prediction market platforms, blocking domestic access to Kalshi and Polymarket while launching a formal investigation into potential gambling law violations.
President Trump has entered the prediction market debate directly, throwing his public support behind platforms like Kalshi and Polymarket while explicitly backing the CFTC’s authority to regulate them — a significant political endorsement for an industry under fire.
Rhode Island’s attorney general has sued Kalshi and Polymarket, saying sports event prediction contracts have already caused an 8% drop in state lottery sports betting revenue.
The Senate Commerce Subcommittee grilled Kalshi, Polymarket, and the American Gaming Association on Wednesday, with chair Sen. Marsha Blackburn saying the hearing was the first of several and hinting strongly at coming legislation.
ARB Interactive CEO Patrick Fechtmeyer says the sweepstakes casino industry has deliberately chosen state-by-state political engagement over the litigation path prediction market platforms have pursued — with mixed results.
