Kalshi and Polymarket step up US lobbying as states challenge event contracts
Regulation1 min read
Kalshi and Polymarket are increasing US lobbying as states contest whether sports-event contracts fall under gambling laws, a report by advocacy group Demand Progress says. The group says Kalshi spent $1.8m lobbying in the first half of 2026, nearly three times its reported total for 2025, and describes political hires at both companies. Federal appeals courts have reached conflicting conclusions on state authority, leaving the issue unresolved.
Kalshi and Polymarket are reportedly increasing lobbying and recruiting political figures as they contest US states’ attempts to regulate sports-event contracts as gambling. A ruling allowing state laws to apply could require operators to obtain licences, follow local consumer protection rules or leave some jurisdictions.
In September, the Sixth US Circuit Court of Appeals ruled that Ohio and Tennessee could regulate sports-event contracts as gambling. The Ninth Circuit Court of Appeals reached a similar conclusion in Nevada. The decisions conflict with a ruling that barred New Jersey from regulating prediction markets.
Demand Progress describes the industry group Coalition for Prediction Markets as a lobbying front. The coalition named former Democratic representative Sean Patrick Maloney as president and former Republican representative Patrick McHenry as senior adviser. McHenry previously led the House Financial Services Committee.
Ella Fanger, a policy adviser at Demand Progress, criticised the companies’ efforts and argued that state and tribal gambling laws protect against predatory practices. She warned that without state controls, consumers could be exposed to unregulated sports betting and insider trading. Several states have asked the US Supreme Court to resolve the issue.