Senator Opposed Prediction Markets, Now Lobbying for Kalshi

States are asserting their authority over prediction markets like Kalshi, arguing that these platforms are essentially gambling operations subject to state regulation. Governors and attorneys general across the U.S. contend that prediction markets should comply with existing gaming laws to protect vulnerable populations and ensure tax revenue is collected. Some states, such as Minnesota, have attempted to ban these markets entirely, though legal challenges have partially blocked these efforts. Additionally, concerns have been raised about specific types of bets offered by prediction markets, with some potentially creating perverse incentives or being contrary to public interest. Kalshi has avoided certain controversial bets, such as those on wildfires, war, or terrorism.