Kalshi Steps Up Lobbying as Casino Industry Pressures Washington
Kalshi is building its presence in Washington as casinos and sportsbooks push the Senate over sports contracts. The dispute also reaches the CFTC and the line between prediction markets and gambling law.
Key Takeaways
- Kalshi spent $990,000 on federal lobbying in the first half of 2026, almost matching its full-year 2025 total.
- The casino industry also increased its lobbying push, with the American Gaming Association spending $1.39 million and the Cherokee Nation $600,000.
- The dispute is centered on prediction markets, which gambling groups say are taking customers and may conflict with state and tribal gambling rules.
Kalshi spent $990,000 (€867,100) on federal lobbying in the first half of 2026, nearly matching what it spent across all of 2025. The prediction market operator is working to deepen its influence in Washington, even as casinos and other gambling interests accelerate their own lobbying campaigns.
Lobby Battle on Capitol Hill
According to federal filings, Kalshi’s direct lobbying spending is now close to the American Gaming Association, the main trade group for casinos and sportsbooks. Once outside firms are included, Kalshi’s total lobbying tab rose to nearly $1.8 million (€1.6 million), a six-month record for the company.
Kalshi works with seven lobbying firms, including its internal team. It has also hired former officials from the Biden and Obama administrations in an effort to improve access to policymakers. Donald Trump Jr. is also being paid as an adviser.
Polymarket is taking a much smaller approach. One firm spent $180,000 (€157,600) lobbying on its behalf, putting it on track to match the $360,000 (€315,300) it spent last year. On the other side of the debate, the American Gaming Association had already spent $1.39 million (€1.2 million) in 2026, which is 30% more than in the same stretch last year. The Cherokee Nation, which also has gaming interests, reported $600,000 (€525,500).
Why the Industry Is Clashing
The core issue is the fast growth of prediction markets and how popular they have become with retail users. As these products gain traction, gambling groups argue they are siphoning off customers from traditional sportsbooks. That makes sports event contracts a direct threat to casinos and gambling companies, especially because they operate outside the usual state and tribal gambling framework.
The fight intensified in June, when gambling groups pressed the Senate to ban sports contracts in the Clarity Act. For European crypto readers, the takeaway is that crypto-style trading products and U.S. gambling rules are becoming increasingly intertwined. These debates can also shape how regulators approach new market structures.
Oversight and Legal Pressure
Kalshi has been dealing with legal and regulatory challenges in the United States for some time. The CFTC granted the company a DCM license in 2020, which let it operate at the federal level, but states such as Arizona and Kentucky have pushed back, arguing that its business runs afoul of their gambling laws.
At the same time, prediction markets are facing more scrutiny from the market itself. Concerns about insider trading have brought fresh attention to the sector and added pressure for tighter rules. Several bills are aimed at limiting that kind of abuse, while the platforms are trying to stay ahead of the criticism.
