Prediction Markets and Casinos Are Both Betting Big on Washington
Kalshi spent $990,000 on federal lobbying within the first half of 2026, almost matching its whole for all of final yr, because it races to counter the on line casino trade on Capitol Hill.
The prediction market operator and its gambling-sector rivals are each sharply elevating spending. Kalshi’s direct lobbying alone almost matches the American Gaming Association’s, signaling how onerous all sides is working to win over lawmakers.
The Prediction Market vs Gambling Lobbying Fight
Kalshi’s $990,000 closes in on the $1 million it spent throughout all of 2025. Including exterior corporations, its whole nears $1.8 million, a document six-month determine disclosed in federal filings this week.
The firm deploys seven lobbying corporations, together with its in-house crew. It has employed former Biden and Obama administration officers to widen its attain. Kalshi additionally counts Donald Trump Jr. as a paid advisor.
Polymarket retains a lighter presence. A single agency spent $180,000 on its behalf, pacing towards the $360,000 spent final yr.
The playing facet is spending extra, too. The American Gaming Association has dedicated $1.39 million in 2026, up 30% from the identical interval final yr. The Cherokee Nation, which holds gaming pursuits, has spent $600,000.
Patrick McHenry, a former Republican congressman who now advises the Coalition for Prediction Markets, stated the on line casino foyer has a structural head start.
“So a lot of the prevailing infrastructure of engagement on the Hill and on the states has been by the on line casino trade. The prediction markets are a brand new entrant into the coverage debate in Washington, and are making nice strides at speaking with lawmakers,” he stated.
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Why the Two Sides Are Clashing
At the middle of the strain is the rise of prediction markets and their rising pull on retail customers. As these venues acquire recognition, they’re drawing bettors away from traditional sportsbooks.
That shift explains the playing sector’s resistance. Operators view sports-event contracts as direct competitors that bypasses state and tribal gaming guidelines.
The rigidity escalated in June, when the gambling industry pressed the Senate to ban sports activities contracts within the crypto market construction invoice.
Prediction markets have additionally confronted considerations about insider buying and selling. Recent incidents highlight the scale of the issue.
That exercise has renewed scrutiny from lawmakers, lots of whom have launched bills to curb the practice. The platforms themselves have moved to counter the growing concern.
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