It was the tale of two election nights for prediction markets.
Kalshi and Polymarket, the two dominant platforms, foretold Democrats’ sweeping victories in the midterms — and well before much of the pundit class — affirming to supporters their value as forecasting tools. But the Democratic wave could also mark the beginning of an uncomfortable new era of scrutiny for the companies in Washington.
President Donald Trump’s regulators have embraced the prediction markets over the last two years, clearing the way for them to quickly expand their businesses with a frenzy of new wagers on politics, sports and stocks.
