Prediction market firms increase lobbying amid regulatory scrutiny

The prediction market industry is facing both increased regulatory scrutiny and new market entries. The Coalition for Prediction Markets, representing firms such as Kalshi, Coinbase, Robinhood, and Underdog, has begun active lobbying efforts at both the state and federal levels. In California, the coalition spent $50,000 through Redwood Public Affairs to engage with state leadership, including Governor Gavin Newsom and Attorney General Rob Bonta.

These lobbying efforts aim to educate policymakers on event contracts as the industry faces lawsuits from state attorneys general and tribal groups alleging violations of gambling laws. Additionally, the coalition allocated $100,000 for federal lobbying via the firm Invariant to monitor emerging regulatory frameworks.

Simultaneously, a new platform called CRSHMARKET has emerged, targeting the livestreaming sector. The service allows users to bet on real-time events occurring during Twitch or Kick streams. The platform has drawn criticism regarding the potential for insider trading and the difficulty of preventing streamers from manipulating outcomes to influence bets.