Kalshi Spent $1.8 Million Lobbying Over Prediction Market Regulation Debate

^{Tarek Mansour, Kalshi CEO}

Kalshi and representatives of the US gambling industry have increased lobbying spending in Congress amid a debate over whether sports prediction markets should be classified as sports betting, CNBC reported.

Kalshi argues that sports prediction contracts are financial instruments that should be regulated at the federal level by the US Commodity Futures Trading Commission (CFTC).

The American Gaming Association (AGA), however, considers such products a form of sports betting, which falls under state-level gambling regulation.

Lobbying spending by key participants in the debate during the first half of 2026 included:

• Kalshi — $990,000 in direct lobbying expenses and nearly $1.8 million including outside lobbying firms. That exceeds the platform’s total lobbying spending for the whole of 2025, which was about $1 million;
• Polymarket — $180,000. At the current pace, the platform’s annual lobbying spending could reach $360,000, matching its total for 2025;
• AGA — $1.39 million directly and nearly $1.8 million including spending through hired firms. The total increased by 30% compared with the first half of 2025;
• The Cherokee Nation, which has gaming interests, — $600,000.

Polymarket is represented in Congress by one lobbying firm, while Kalshi works with seven lobbying structures, including its own government affairs team.

The dispute over prediction market regulation intensified after the Trump administration backed the position that such platforms should be regulated at the federal level rather than by individual states. Federal authorities argue that prediction markets fall under CFTC oversight, while several states consider these services a form of gambling and have sought to restrict their operations.