A senator tried to ban gambling on prediction markets—now she's a Kalshi lobbyist
Summary
Senator Blanche Lincoln helped create a law in 2010 that aimed to ban sports gambling through prediction markets. Now, she works as a lobbyist for Kalshi, a prediction market company that wants looser rules to allow sports betting on these markets. This issue has led to legal fights between the federal government and some U.S. states over who can control gambling laws for prediction markets.Key Facts
- In 2010, Senator Blanche Lincoln warned that prediction markets could be used for gambling on events like the Super Bowl or horse races.
- Lincoln helped write Title VII of the Dodd–Frank Act, which gave the Commodity Futures Trading Commission (CFTC) the power to regulate these markets and prevent harmful gambling.
- Lincoln’s original goal was for the CFTC to ban event contracts that exist mainly for gambling.
- The law left the final decision about banning these bets to the executive branch rather than banning them outright.
- The Trump administration allowed sports betting on prediction markets using the authority given by Dodd-Frank.
- The Biden administration opposed sports gambling event contracts, but the Trump administration reversed this stance.
- Several U.S. states have sued companies like Kalshi and Polymarket, leading to court battles about whether federal or state law applies to prediction market gambling.
- The Supreme Court may soon decide if the CFTC can stop states from enforcing their own gambling laws on prediction markets.
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