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- Kalshi backs new advocacy group to defend federally regulated prediction markets.
- Americans for Fair Markets plans campaigns against sportsbook and casino narratives.
- Congress probes Kalshi and Polymarket over user checks and suspicious trading controls.
Kalshi has backed Americans for Fair Markets as prediction markets face pressure from casinos, sportsbooks, regulators, and Congress. The new group aims to defend federally regulated exchanges and shape national policy for event contracts now.
The group launched with Taylor Budowich as strategic advisor. Budowich served as deputy White House chief of staff under Susie Wiles.
As per the report, Americans for Fair Markets (AFM) said it will push federal policy for prediction markets. It also plans paid and earned campaigns against what Kalshi called false narratives from sportsbook and casino interests.
Kalshi’s AFM Pushes KYC Checks and CFTC Funding
The group said consumer protection will be part of its agenda. Its priorities include know-your-customer checks, insider trading bans, full CFTC funding, and limits on war, death, terrorism, and assassination contracts.
Budowich’s appointment gives the group a link to Republican political circles. His appointment comes as prediction market companies are looking for support in Washington in a broader push for regulation.
Kalshi’s head of government relations, John Bivona, will also be in charge of the board of the group. He said the launch was an attempt to counter the gaming industry’s efforts to defend its market shares.
The industry will not be outspent or out-organized by entrenched competitors, Bivona said. His remarks showed the dispute between federally regulated platforms and gambling companies has become direct.
The launch follows Congress’ consideration of the sector. A U.S. House committee has launched an inquiry into Kalshi and Polymarket.
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The committee requested records from firms to show user checks and suspicious trading controls. The legislation is being reviewed to see if anyone with non-public government information should benefit from event contracts.
Kalshi and Polymarket Fight State Gambling Rules
Those concerns were sparked by reports of suspicious trades associated with geopolitical events. Reports also cited a U.S. Army master sergeant accused of using classified information to earn more than $409,000.
Kalshi argues that federally regulated prediction markets must continue to be subject to the CFTC. State officials say that certain event contracts, particularly those in sports markets, should be subject to state gambling rules.
That conflict has reached the courts. Kalshi and Polymarket had been blocked from emergency bids in Nevada and Washington after a Ninth Circuit panel refused to take the case into federal court.
The panel said a federal derivatives defense does not switch state gambling cases to federal court. The decision put pressure on the debate over the regulation of prediction markets.
Kalshi is also diversifying its financial applications. Bernstein pointed to its first bespoke block trade as a sign of institutional interest in event-risk trading.
According to an earlier report, Kalshi will broadcast its live probabilities from Fox News, Fox Business, Fox Weather, and Fox One. Other similar integrations had occurred with CNN and CNBC.
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