Kalshi and Polymarket valuations surge amid ongoing regulatory disputes

According to a report by CNBC, there is ongoing controversy over regulatory authority for U.S. prediction markets, with 17 states having challenged relevant platforms. Some states believe that sports event contracts constitute gambling and should be regulated at the state level, while the CFTC asserts that event contracts are derivatives and should fall under federal regulation. The Chairman of the House Oversight and Government Reform Committee, James Comer, has requested that Kalshi and Polymarket submit documents outlining their insider trading prevention mechanisms. Despite regulatory uncertainty, Kalshi’s valuation reached 22 billion USD after its latest funding round, doubling from 11 billion USD in December last year; Polymarket’s valuation rose to 15 billion USD. Executives of Flutter Entertainment, DraftKings, and Robinhood stated they will continue investing in the prediction market business.