States Move Against Kalshi, Polymarket as Sports Prediction Markets Grow

NPR reports that New Hampshire state Sen. Tim Lang plans to introduce legislation this week that would allow the state to join others in suing prediction market platforms such as Kalshi and Polymarket, which he says are diverting sports‑betting dollars away from the state’s regulated DraftKings operation that has generated more than $170 million since 2019. The platforms let users buy yes/no futures contracts on events including sports, while arguing they are federally regulated financial markets under the Commodity Futures Trading Commission rather than state‑regulated sportsbooks, meaning states get no tax cut. Arizona has already filed criminal charges against Kalshi for allegedly offering illegal sports bets, and Connecticut, Michigan and Washington are embroiled in civil court battles over whether these products are gambling or commodities. Legal experts quoted in the piece say the law is unsettled on whether sports betting and prediction markets are legally distinct, and note that the Trump administration currently backs Kalshi’s position that 50 different state regimes are unworkable. The story highlights a growing clash between states hungry for gambling revenue and a new generation of federally linked prediction platforms that are trying to dodge state gaming rules, with some New Hampshire officials favoring crackdowns while others welcome the competition.