Overview
- Senators Adam Schiff and John Curtis introduced the Prediction Markets Are Gambling Act on Monday, which would bar CFTC‑registered platforms from listing contracts tied to sporting events or casino‑style games such as poker and blackjack.
- Kalshi and Polymarket announced new integrity measures the same day, with Kalshi pre‑screening and blocking athletes and political candidates and adding a whistleblower tool, while Polymarket broadened its rules to ban trading by anyone with confidential information or power to sway an outcome.
- Kalshi said it is partnering with Integrity Compliance 360 to identify athletes and officials at signup, and Polymarket said it is building surveillance for sports markets with Palantir, in addition to expanded monitoring and reporting channels.
- State pressure is mounting as Arizona filed criminal charges against Kalshi and a Nevada court issued a temporary restraining order on event contracts, while CFTC Chair Michael Selig asserted exclusive federal jurisdiction and warned challengers to expect a court fight.
- Analysts and reporters said a ban would gut much of Kalshi’s sports‑driven business and dent Polymarket’s growth, threatening recent league deals like MLB’s partnership, even as trading volumes topped $1.2 billion on Super Bowl Sunday and shares of sportsbook parents jumped after the bill surfaced.