Nine Democratic lawmakers in the US House of Representatives are calling on the Federal Trade Commission to investigate whether online prediction market platforms are misleading consumers. The lawmakers allege these platforms advertise as gambling venues to attract customers, but present themselves as regulated financial tools to regulators.
Representatives Kevin Mullin and Gabe Vasquez led the letter, warning that such “contradictory messaging” may deceive consumers about protections. The FTC is asked to provide information by June 29 on any planned enforcement actions.
Prediction markets allow users to trade contracts on event outcomes. They have faced heightened scrutiny following an earlier House probe into insider trading on platforms Polymarket and Kalshi. The current letter, signed by seven other lawmakers, questions whether the platforms evade state gambling rules while attracting bettors.
The industry has grown rapidly, with blockchain-based settlement and transaction volumes reaching record highs in March.