Who Controls Prediction Markets? Federal and State Powers Collide

Kalshi, Polymarket and the Coalition for Prediction Markets spent at least $3 million on lobbying and political contributions in 2026, as the companies and state officials fight over who can regulate prediction markets. The platforms say their contracts fall under federal oversight, while states argue they are gambling products governed by state law. The CFTC has sued states seeking to enforce gambling laws against prediction-market platforms, adding a federal dimension to the dispute.