Online gambling companies and prediction market operators are spending millions on state legislative races in Tuesday’s midterms as they look to shape America’s patchwork of betting regulations.
Gambling companies in the U.S. are under pressure to find new growth as prediction markets eat into the $17bn sports betting economy. Many of them argue that platforms such as Polymarket and Kalshi, which are regulated by the federal government as financial derivative companies, should be taxed as betting companies to create a level playing field in the industry.
Others, including FanDuel and DraftKings, have launched their own prediction markets, creating a split in the powerful US gambling lobby.
