Kalshi spent $990,000 on federal lobbying in the first half of 2026, nearly matching the $1 million it spent in all of 2025. Including outside firms, the prediction market platform's total lobbying hit $1.8 million — a record six-month figure. The spending surge comes as the gambling industry pressures Congress to rein in prediction markets, which are drawing bettors away from traditional sportsbooks and bypassing state and tribal gaming rules.
Kalshi nearly matches 2025 total in six months
Kalshi now uses seven lobbying firms, including its in-house team. It has hired former Biden and Obama administration officials, as well as Donald Trump Jr., as a paid advisor. The $990,000 figure covers just federal lobbying; the company's total outlay including outside firms reached $1.8 million in the first half of 2026. That's a record for any six-month period for the platform.
Polymarket's quieter approach
Polymarket spent $180,000 on lobbying in the first half of 2026. That pace puts it on track to match the $360,000 it spent in all of 2025. The smaller figure reflects a different strategy — Polymarket has focused more on product and user growth than on building a Washington footprint. But the gap between the two platforms' spending is widening.
The casino lobby pushes back
The American Gaming Association committed $1.39 million in lobbying in 2026, up 30% from the same period last year. The Cherokee Nation, which holds gaming interests, spent $600,000. Patrick McHenry, a former Republican congressman now advising the Coalition for Prediction Markets, said the casino lobby has a structural head start in Washington. In June, the gambling industry pressed the Senate to ban sports contracts in the crypto market structure bill. That effort is ongoing.
Insider trading concerns
Prediction markets face growing scrutiny over insider trading. Lawmakers have introduced bills to curb the practice, and platforms are moving to counter those concerns. Kalshi and Polymarket have both said they are implementing measures to detect and prevent insider trading, though details remain sparse. The issue adds another layer of complexity to the regulatory fight.
The Senate is expected to take up the crypto market structure bill later this year. The sports contract ban will be a key point of contention, and prediction market platforms are working on internal measures to address insider trading concerns.
