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A new coalition is forged to oppose prediction markets like Kalshi and Polymarket. It will focus on pushing for enforcement of state and tribal gaming laws, arguing that the platforms facilitate illegal sports betting.
The newly established coalition is led by former Rep. Mick Mulvaney, a South Carolina Republican who also served as Acting White House Chief of Staff during the first term of U.S. President Donald Trump. Mulvaney is also a contributor for NewsNation, The Hill’s sister network, which is also owned by Nexstar Media Group.
Gambling Is Not Investing launched on Monday. it contends that federally regulated prediction markets are operating in states where sports betting is illegal and improperly bypassing state regulations and consumer protections.
Prediction markets have also entered states where sports betting is legal. A handful of these states have entered into legal battles with Kalshi.
“Gambling products — regardless of what you call them — must follow established state and tribal laws,” said Mulvaney, who serves as the group’s executive director, in a statement.
“Rebranding sports wagering as ‘trading’ or ‘investing’ or ‘predicting’ misleads consumers, undermines responsible gaming protections, and weakens the state and tribal systems built to protect the public and fund vital community services,” he added.
“The CFTC is taking an important step to ensure that these markets have a place here in America and have the integrity and resilience and vibrancy that our derivatives markets deserve,” CFTC Chair Mike Selig said in a video posted on the social platform X last month.
“To those who seek to challenge our authority in this space, let me be clear: We will see you in court,” he continued.
Selig’s announcement sparked pushback from Utah Gov. Spencer Cox (R), who said he would “use every resource within my disposal as governor of the sovereign state of Utah, and under the Constitution of the United States to beat you in court.”
“These prediction markets you are breathlessly defending are gambling—pure and simple. They are destroying the lives of families and countless Americans, especially young men. They have no place in Utah,” Cox added.
Kalshi sued the state of Utah, its Attorney General and Cox last week claiming that authorities in Utah are planning to ban the prediction market for violating gambling bans, and calls on a judge to issue an injunction to prevent them from doing so.
These conservative groups are reportedly supporting Gambling is Not Investing:
- Consumer Action for a Strong Economy – A conservative advocacy group focused on financial issues.
- Frontiers of Freedom – A conservative public policy organization.
- Hispanic Leadership Fund – A conservative political advocacy group.
- Moms for America – A conservative family-focused advocacy organization.
- Chris Costigan, Gambling911.com Publisher
