Democrats signal tighter oversight of prediction markets, Politico says

Prediction market platforms including Kalshi and Polymarket are likely to face stronger regulatory pressure after Democrats won the midterm elections, Politico reported. Politico said President Donald Trump’s regulators had defended prediction markets over the past two years, fueling a surge in betting on politics, sports and stocks, while Democrats are now signaling a strong congressional oversight framework. The outlet added that Sen. Jeff Merkley of Oregon and Rep. Maxine Waters of California, both Democrats, have pledged tighter regulation. Sen. Elizabeth Warren of Massachusetts had also previously sent a letter to Kalshi and Polymarket questioning the legitimacy of election-related markets, according to the report.