‘The whole landscape changed’: Gaming CEOs see new opportunities post-midterms

Democratic victories in the US midterm elections are expected to bring greater congressional and state scrutiny of prediction markets, despite supporters’ claims that the platforms helped forecast election results. Democrats’ control of Congress gives them investigative powers and could revive attention on Donald Trump Jr., who advises Kalshi and sits on Polymarket’s advisory board.

Congress could consider a bipartisan bill barring federally regulated exchanges from offering sports or casino-style contracts, but it has only been referred to committee and no vote is scheduled. Legal disputes are also continuing: Utah has filed criminal charges against Kalshi and its founders, a federal appeals court rejected Kalshi’s request for a rehearing in Nevada, and incoming Democratic attorneys general in Ohio, Michigan and Nevada will decide how to handle existing cases. The American Gaming Association predicts scrutiny will intensify, while Polymarket says it welcomes work with lawmakers.