Prediction Markets, Casinos In Lobbying Duel Over Industries Rife With Consumer Debt, Addiction Issues

September 01, 2026 1:05 PM ET Prediction markets quarreled with casinos as both increased lobbying spending on Congress ahead of the midterm elections. Kalshi, Polymarket, casino and gaming sectors spent money on lobbying in an attempt to win lawmakers’ support while prediction markets came under scrutiny over risks involving insider trading and unlicensed state gambling. The industry spent more on lobbying while gambling addiction issues were on the rise, particularly among young men. In a letter to Congress in January, the gambling industry argued that prediction markets are “indistinguishable from legal sports betting” and should be subject to gambling laws and taxes. The American Gaming Association (AGA), a gambling industry lobbying group, argued its state tax revenue declined because