Dan Dawson

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.

Online prediction markets like Kalshi and Polymarket face scrutiny from state lawmakers who argue they circumvent gambling regulations. State legislators criticized the platforms at a summit in Chicago, while Kalshi claimed federal oversight by the Commodity Futures Trading Commission. Legal actions and regulatory conflicts have emerged as states and the Trump administration challenge jurisdiction over the markets.

Online prediction markets like Kalshi and Polymarket face scrutiny from state lawmakers who argue they circumvent gambling regulations. The platforms claim they operate like commodity markets, but states are enacting legislation and lawsuits to enforce oversight, with the Trump administration opposing state regulation. A conflict over jurisdiction between states and the Commodity Futures Trading Commission has intensified, as 44 state attorneys general challenge the agency's authority.