Sara Slane

Online prediction markets like Kalshi and Polymarket face scrutiny from state lawmakers who argue they bypass gambling regulations, particularly around sports betting. At a recent summit, legislators criticized the platforms, citing concerns over underage participation and lack of transparency, while Kalshi claimed it operates under federal commodity futures regulations.

Online prediction markets like Kalshi and Polymarket face scrutiny from state lawmakers who argue they bypass gambling regulations. States have initiated lawsuits and proposed legislation, while the platforms claim regulation should be handled nationally by the Commodity Futures Trading Commission. Kalshi preemptively sued Iowa's attorney general to block enforcement actions.