FanDuel and DraftKings pursue prediction markets amid regulatory uncertainty

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.