House Democrats Seek FTC Probe of Prediction Market Advertising

Nine Democratic members of the House have asked the Federal Trade Commission to investigate whether online prediction market platforms are presenting themselves differently to customers than they do to regulators. Representatives Kevin Mullin and Gabe Vasquez urged the agency to determine if platforms are advertising as gambling products while telling regulators they are financial tools offering investment products.

Prediction markets let users trade contracts on the outcomes of future events and have come under scrutiny for possible insider trading. Lawmakers noted that Congress probed Polymarket and Kalshi in May and questioned the companies’ responses to insider-trading incidents, saying some platforms use language associated with sports gambling—such as legal betting and betting on sports without a sportsbook—while appearing to try to evade state gambling rules.

United States

house democrats, ftc, prediction markets, advertising, kevin mullin, gabe vasquez, polymarket, kalshi, insider trading, sports betting