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Arizona prediction-market enforcement faces scrutiny over gaming revenue links

Enforcement & compliance

Arizona’s gaming regulator receives funding linked to tribal gaming revenue, while the state has brought criminal charges against Kalshi, the report says. Wake Forest economics professor Koleman Strumpf argued that the funding arrangement could create incentives, but said he was not claiming it had affected enforcement decisions.

The debate concerns whether revenue-linked regulator funding could affect confidence in enforcement against prediction-market operators.

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Regulation

Stock-linked prediction markets draw US scrutiny over regulatory jurisdiction

Stock-linked contracts offered by Polymarket and Kalshi face scrutiny over whether the CFTC or SEC should oversee them, citing Reuters coverage carried by Moneycontrol on 28 September. Legal and policy experts warned that growth in these markets could affect underlying share trading and complicate enforcement against misconduct.

A Reuters report carried by Moneycontrol on Sept. 28 says stock-linked prediction markets run by Polymarket and Kalshi are attracting fresh attention, and it leaves open whether the CFTC or the SEC ought to serve as their main supervisor. Such contracts allow bets on share price movements, company figures and corporate events. According to legal and policy specialists who spoke to Reuters, if the sector keeps expanding it may in time influence how the underlying shares trade and make it harder for regulators to detect and pursue wrongdoing.

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