44 State AGs Challenge Kalshi, Polymarket as Lawmakers Warn of Sports Betting Loopholes
Updated
Updated · Stateline · Jul 31
44 State AGs Challenge Kalshi, Polymarket as Lawmakers Warn of Sports Betting Loopholes
3 articles · Updated · Stateline · Jul 31
Summary
Chicago lawmakers used a heated NCSL summit panel to press Kalshi and Polymarket over youth access, sports-event trading and what they called a backdoor around state gambling rules.
Kalshi told legislators it answers to the CFTC, not states, and needs a national standard, but Iowa Sen. Dan Dawson said a state subcommittee could not get basic data on the platform’s reach.
44 state attorneys general this week told the CFTC it lacks authority over sports-related event contracts, while Kalshi has already sued Iowa to block possible state enforcement.
At least 8 states have barred employees from using insider information on prediction markets after a White House teleprompter operator was accused of betting on presidential speeches.
39 states and Washington, D.C., have legalized sports betting since 2018, sharpening state and tribal fears that prediction markets could evade local oversight and push the fight to the Supreme Court.