Polymarket and Kalshi are suddenly in the government’s crosshairs

Prediction markets like Polymarket and Kalshi have hit the headlines—not least because of their role in making some people filthy rich off the back of the Middle Eastern war. But they’ve also drawn the attention of legislators concerned about their growing prominence. Many officials have privately raised concerns about platforms like Polymarket and Kalshi. Arizona’s attorney general has gone further, charging Kalshi with offering what the state alleges are illegal bets on election outcomes. “Kalshi may brand itself as a ‘prediction market,’ but what it’s actually doing is running an illegal gambling operation and taking bets on Arizona elections, both of which violate Arizona law,” said Kris Mayes, the state’s attorney general, in a statement. At the same time, Sen. Chris Murphy and Rep. Greg Casar, both Democrats, have introduced the BETS OFF Act, which would ban wagering on government actions, terrorism, war, assassination, and events where an individual knows or controls the outcome