U.S. Lawmakers Push Back Against Legalizing Sports Prediction Markets Like Kalshi

^{Pictured: Dina Titus, Nevada Congresswoman}

Nevada Congresswoman Dina Titus has sent an open letter to the U.S. Commodity Futures Trading Commission (CFTC), voicing concerns over the potential legalization of sports prediction markets on platforms like Kalshi. She argues that granting these markets legal status could serve as a loophole to effectively legalize sports betting nationwide, according to Next.io.

In her letter, Titus warned that legalizing sports prediction markets could undermine the regulated sports betting industry in the U.S., weaken consumer protections, and reduce state tax revenues.

CFTC Acting Chairman Caroline D. Pham responded by noting that regulatory proceedings on prediction markets have already advanced too far to be easily reversed.

The CFTC is planning a roundtable discussion with industry experts in the near future to explore regulatory approaches for platforms operating within the prediction market space.

Meanwhile, Kalshi, which initially offered predictions solely on American football, has expanded into basketball, tennis, baseball, and other sports. This growing presence has raised concerns among licensed bookmakers and policymakers, as national-level prediction markets challenge state-licensed betting operators.

The American Gaming Association, which represents licensed U.S. gambling companies, has already requested to participate in the upcoming CFTC roundtable.

However, not all U.S. bookmaker operators share the same concerns. DraftKings CEO Jason Robins, for example, believes prediction market platforms could help expand the sports betting industry, offering opportunities for regulated operators to collaborate with Kalshi and similar platforms.

In January 2025, Donald Trump Jr., son of the current U.S. president, was named a strategic advisor to Kalshi.