Lawmakers continued to express mixed feelings about the burgeoning prediction markets industry. These platforms, such as Kalshi and Polymarket, allow users to bet on a wide range of topics, from political events to weather forecasts, raising concerns about potential insider trading and ethical implications.
Some members of Congress are worried about the effects of these markets. Rep. Alexandria Ocasio-Cortez (D-N.Y.) stated, “I think it’s bad,” highlighting the potential for these platforms to be used for personal gain.
Are Prediction Markets The Future Of Betting?
As reported by the Insider, prediction markets have gained popularity, particularly during the 2024 presidential election. Their rise has been supported by a favorable regulatory environment from the Trump administration and growing public interest.
Despite this growth, there is ongoing debate about whether these platforms should be regulated at the state or federal level. Rep. Ritchie Torres (D-N.Y.), who introduced a bill targeting insider trading, told the outlet, “The status quo strikes me as unsustainable in the long run.”
Lawmakers Clash Over Gambling’s Dark Side
Concerns about the potential for corruption have been amplified by incidents like a well-timed bet on former Venezuelan President Nicolas Maduro’s capture. This prompted Torres to introduce his bill and led to calls for stricter oversight from other lawmakers.
Kalshi has responded by expanding its surveillance and enforcement efforts, with CEO Tarek Mansour stating that the company has initiated over 200 investigations in the past year. Sen. Ted Cruz (R-Texas) noted that he’s still examining the issue and listening to arguments from both sides.
Inside The Push For Stricter Regulations
As Business Insider noted, the Coalition for Prediction Markets, supported by Kalshi, has been actively engaging with lawmakers to advocate for regulation and transparency. The coalition has even hired former representatives to help push their agenda in Washington.
However, skepticism remains. Sen. Chris Murphy (D-Conn.) criticized prediction markets, describing them as contributing to a “dystopian world” and questioning their necessity. “Why do I need a prediction market to do it, if the prediction market is also scamming millions of people out of money?” Murphy said.