US EditionKalshi and Polymarket are skirting laws on sports betting, states say
States argue Kalshi and Polymarket evade gambling laws and cost over $570 million in tax revenue, while platforms claim they operate as commodity markets exempt from state rules.
- Last week, state regulators have launched enforcement actions against Kalshi and Polymarket, citing their sports betting contracts, with Nevada regulators engaged in a legal fight to halt prediction market activity.
- Because the companies describe trades as investments, Kalshi and Polymarket contend their contracts resemble commodity markets, but state leaders and attorney Daniel Wallach say states can regulate based on the bets' substance.
- Prediction markets process more than $13 billion in monthly transactions, and states estimate more than $570 million in lost tax revenue while over 100 accounts cashed in $10,000 or more last week.
- New York lawmakers are considering a bill to ban prediction-market contracts, and a bipartisan group of attorneys general from 39 states recently urged courts to uphold state authority.
- With the CFTC asserting authority last month, federal moves to block state regulation complicate efforts by state governments and raise bipartisan alarms about markets processing more than $13 billion monthly.
17 Articles
17 Articles
'Clearly gambling': Kalshi and Polymarket accused of skirting laws on sports betting
Online prediction markets allow users to put money on the outcome of almost anything — this weekend’s NBA game between the Warriors and the Thunder, the next supreme leader of Iran, whether the government will confirm the existence of aliens.But those markets have no state oversight and operate even...
Companies are skirting laws on sports betting, states say
Companies are skirting laws on sports betting, states say kcpnews2 Sat, 03/07/2026 - 05:00 Image (Stateline) Online prediction markets allow users to put money on the outcome of almost anything — this weekend’s NBA game between the Warriors and the Thunder, the next supreme leader of Iran, whether the government will confirm the existence of aliens.But those markets have no state oversight and operate even in states that ban gambling.The platf…
Coverage Details
Bias Distribution
- 94% of the sources lean Left
Factuality
To view factuality data please Upgrade to Premium
