Former US senator Blanche Lincoln wrote to the Commodity Futures Trading Commission supporting the expansion of prediction markets into sports, according to the report. Her letter argued that federal oversight should preclude state interference; the report said the CFTC had softened its stance and that legal challenges remained ongoing.
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Amanda Fischer, policy director and chief operating officer at Better Markets, said Congress did not intend the CFTC to oversee sports-related event contracts under the 2010 Dodd-Frank law. She also argued that the agency lacks the resources to supervise prediction markets effectively and questioned Polymarket’s compliance with controls required by a 2022 settlement.
US states are challenging prediction markets that offer event contracts they argue amount to sports betting, according to the report. The dispute concerns whether the Commodity Futures Trading Commission or state gambling authorities have regulatory authority, and which consumer protections apply.
A former aide to Andrew Cuomo advocated taxing Kalshi and other prediction market operators in New York. The report described ongoing litigation between federally regulated sports prediction markets and states alleging that the exchanges operate illegal sportsbooks.
Elie Mishory, a former Kalshi chief regulatory officer and current senior adviser to the US Securities and Exchange Commission chairman, published a working paper on prediction-market information and event integrity. He argues regulators should distinguish among types of informational advantage and treat event manipulation separately.
Ohio senator Bill DeMora introduced Senate Bill 479 this month to prohibit wagers on election outcomes and other political contests, reportedly. The proposal would also cover prediction market platforms including Kalshi and Polymarket; DeMora said concerns about confidence in election results motivated the measure. The report says the bill is part of a wider effort to apply Ohio gambling laws to prediction markets, while Kalshi is seeking a rehearing after a federal appeals court ruling that Ohio can regulate them.
Ohio senator Bill DeMora introduced Senate Bill 479 this month to prohibit wagers on election outcomes and other political contests in the state, according to a report. The bill would also extend the restriction to prediction market platforms including Kalshi and Polymarket. It is DeMora's second attempt to regulate prediction markets, following SB 430 in April.