Key Points
- Kalshi has backed a new lobbying organization called Americans for Fair Markets to support prediction markets in Washington.
- The group appointed former White House deputy chief of staff Taylor Budowich as a strategic advisor while positioning itself against sportsbooks and casino operators.
- The lobbying push arrives as US lawmakers intensify scrutiny of prediction markets and launch investigations into insider trading concerns involving Kalshi and Polymarket.
Prediction market platform Kalshi has launched a new lobbying initiative aimed at shaping federal policy around event-based trading markets in the United States.
The company announced Friday that it is backing a newly formed advocacy organization called Americans for Fair Markets, which will support federally regulated prediction markets and push back against critics from the gambling and sportsbook industries.
As part of the initiative, the organization appointed former White House deputy chief of staff Taylor Budowich as its strategic advisor, bringing a high-profile political figure into the growing prediction market sector.
Kalshi said the new lobbying group was created to defend prediction markets from what it described as misleading attacks from traditional gambling operators attempting to preserve their market dominance.
Prediction Markets Face Rising Political Pressure
The announcement comes during a period of increasing regulatory and political scrutiny for prediction market platforms across the United States.
On the same day Americans for Fair Markets was unveiled, the US House launched an investigation into Kalshi and rival platform Polymarket over their handling of alleged insider trading activity.
Lawmakers are examining how prediction market companies monitor suspicious trading behavior following reports involving unusually well-timed bets connected to geopolitical developments and political events.
The growing attention highlights how prediction markets have rapidly moved from a niche financial product into a politically sensitive industry intersecting with finance, elections and national security concerns.
Former Trump Official Joins Effort
Taylor Budowich’s involvement adds another Trump administration connection to the prediction market industry.
Budowich previously served as deputy White House chief of staff and remains closely connected to President Donald Trump’s political network.
Trump himself has expressed mixed views on prediction markets in recent months.
Last month, the president criticized prediction markets following controversial wagers related to the Iran conflict, saying he was “not happy” with the platforms after concerns emerged about suspiciously timed trades.
However, Trump later softened his position and warned that the United States could “get left out in the cold” if it failed to embrace the emerging industry.
Trump family connections to prediction markets have also grown. Donald Trump Jr. previously invested in Polymarket, joined the company’s advisory board and also serves as an adviser to Kalshi.
Industry Pushes for Federal Oversight
Kalshi said Americans for Fair Markets would advocate for federal oversight through the Commodity Futures Trading Commission (CFTC), which the company argues should remain the sole regulator for prediction markets nationwide.
The CFTC has increasingly clashed with state authorities over jurisdictional control.
Several states argue that prediction market platforms violate local gambling laws, while the CFTC maintains that these platforms fall under federal derivatives and commodities regulation.
The dispute has triggered multiple legal battles between federal regulators and state governments over who ultimately controls prediction-market operations.
Kalshi said the new lobbying organization would support federally regulated platforms that implement safeguards such as know-your-customer rules, insider trading prohibitions and restrictions on contracts tied to violence or terrorism.
New Lobbying Group Targets Sportsbooks and Casinos
Americans for Fair Markets positioned itself directly against traditional sportsbook and casino operators, accusing them of attempting to suppress competition from prediction markets.
Kalshi’s head of government relations, John Bivona, who also joined the board of the new organization, said the group intends to aggressively defend the industry in Washington.
“We’re not going to be outspent or out-organized by entrenched interests protecting their monopolies,” Bivona said.
“Millions of Americans have shown they want regulated, open, and fair prediction markets — and we’re going to make sure they have access to them.”
The statement reflects the broader battle between emerging event-contract platforms and traditional gambling companies over how prediction markets should be classified and regulated.
Broader Prediction Market Lobbying Effort Grows
The new group adds to a wider lobbying campaign already underway within the prediction market sector.
In December 2025, Coinbase, Crypto.com and Robinhood backed the launch of the Coalition for Prediction Markets, another industry advocacy organization focused on shaping crypto and event-contract regulation.
The combined efforts suggest that prediction-market companies are increasingly investing in long-term political influence as the sector expands into mainstream financial and political discussions.
Regulatory Future Remains Uncertain
Despite rapid industry growth, the future regulatory framework for prediction markets remains unclear.
Questions surrounding insider trading, election integrity, gambling laws and federal oversight continue to generate debate among lawmakers and regulators.
At the same time, growing institutional involvement and political backing indicate that prediction markets are becoming an increasingly important part of the broader financial technology landscape.
The lobbying push by Kalshi and its allies demonstrates how prediction-market firms are preparing for a prolonged regulatory battle as the industry seeks legitimacy and expansion within the US financial system.
Comparison, examination, and analysis between investment houses
Leave your details, and an expert from our team will get back to you as soon as possible
