Kalshi has launched a new advocacy group, Americans for Fair Markets, appointing former deputy White House chief of staff Taylor Budowich as strategic advisor. The move comes as the prediction market industry faces mounting pressure from casinos, sportsbooks, state regulators, and Congress.
Lobbying Goals: Federal Rules and Consumer Protections
Americans for Fair Markets aims to shape federal policy for prediction markets and federally regulated exchanges. Kalshi said the group will run paid and earned campaigns against what it calls "false narratives about prediction markets" pushed by sportsbook and casino interests. Its stated priorities include know-your-customer checks, bans on insider trading, full CFTC funding, and limits on contracts tied to war, death, terrorism, and assassination.
Taylor Budowich Bridges Republican Circles
Budowich most recently served as deputy White House chief of staff under Susie Wiles. His role gives the group a direct link to Republican political circles. John Bivona, Kalshi's head of government relations and AFM board member, said: "We're not going to be outspent or out-organized by entrenched interests protecting their monopolies."
Congressional Probe and State Legal Battles
On the same day, the U.S. House Committee on Oversight and Government Reform opened an investigation into Kalshi and Polymarket, requesting records on user checks, geographic limits, and suspicious trading controls. The probe follows concerns that users with non-public government information could profit from event contracts. Related reports cited suspicious trades linked to geopolitical events and a case where a U.S. Army master sergeant was accused of using classified information to earn over $409,000.
At the state level, Kalshi and Polymarket lost emergency bids in Nevada and Washington. A Ninth Circuit panel ruled that a federal derivatives defense does not automatically move state gambling cases into federal court. Kalshi wants CFTC oversight, while state regulators argue some event contracts fall under local gambling laws.
Kalshi Expands to Institutional Use Cases
Despite regulatory uncertainty, Kalshi pursues larger financial applications. Bernstein highlighted Kalshi's first bespoke block trade as a step toward institutional event-risk trading, while Clear Street added a regulated access route for large clients. Fox will stream Kalshi's real-time probabilities across its networks, following integrations with CNN and CNBC.