- Kalshi launched Americans for Fair Markets (AFM) to advocate for prediction markets and support related legislation.
- Taylor Budowich, a former senior White House staffer, joined the organization as a strategic advisor.
- AFM says it will oppose efforts by groups it claims are protecting existing market monopolies.
- House Oversight Committee Chair James Comer announced investigations into insider trading concerns involving Kalshi and Polymarket.
- The gaming industry continues to challenge prediction markets, arguing they resemble sports betting operations.
Kalshi Introduces Prediction Market Advocacy Organization
Kalshi announced on Friday the launch of Americans for Fair Markets (AFM), a new advocacy organization created to help shape policymakers’ views on prediction markets. According to Kalshi, the group will work to support legislation focused on innovation, market integrity, and consumer protection. In a blog post, the company said AFM would actively oppose interests that it believes are focused on protecting monopolies and spreading misinformation about prediction markets.
Kalshi also confirmed that Taylor Budowich, a former senior White House staffer who resigned in September, will serve as a strategic advisor to the organization. Budowich previously helped lead communications efforts for the White House and a pro-Trump super PAC.
Launch Comes Amid Increased Scrutiny of Prediction Markets
The debut of Americans for Fair Markets comes as prediction markets face growing attention from lawmakers in Washington.
On Friday, House Oversight Committee Chair James Comer (R-KY) announced investigations into insider trading concerns involving both Polymarket and Kalshi. Comer cited suspicious wagers connected to military actions involving Venezuela and Iran, incidents that have been linked to arrests in the United States and Israel in recent months.
Kalshi has repeatedly emphasized its position as a federally regulated exchange overseen by the Commodity Futures Trading Commission (CFTC). The company noted that while Polymarket also operates a regulated platform in the United States, most betting activity occurs on its international platform.
Prediction Markets and Gaming Industry Remain at Odds
Americans for Fair Markets argued that banning prediction markets would drive users toward offshore platforms lacking regulatory oversight and consumer protections.
The organization’s website states: “A handful of legislators and a gaming lobby want to ban prediction markets outright. It would push them offshore-onto unregulated platforms with no identity verification, no consumer protections, no insider trading rules, and no cop on the beat.”
The gaming industry has rejected that characterization. During congressional testimony on Wednesday, American Gaming Association President and CEO Bill Miller criticized prediction market platforms.
Miller stated: “These so-called prediction markets are deceptively calling sports betting financial contracts and investing. Despite messaging designed to beguile policymakers and the public, they are increasingly being exposed as backdoor sports-betting operations.”
The differing positions highlight the ongoing debate over how prediction markets should be regulated as lawmakers continue examining the sector.
Recently, U.S. appeals court handed Kalshi a significant legal victory, ruling that the Commodity Exchange Act overrides conflicting state gambling laws and reaffirming the CFTC’s authority over sports-related event contracts. The decision follows a separate federal court order blocking Arizona from enforcing gambling restrictions against the prediction market platform, while Nevada continues to challenge Kalshi’s operations, underscoring the growing regulatory battle between state authorities and federally regulated prediction markets.
Source: Kalshi
