US Senate · Republicans · X · CoinDesk
Harry Levant, director of gambling policy at the Public Health Advocacy Institute, testified on Wednesday
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"It's a known addictive product, like heroin," he said.
Key facts
- Earlier this week, Kalshi co-founder and CEO Tarek Mansour posted on social media site X to highlight his company's $2 million commitment with the National Council on Problem Gambling to support
- This Minnesota law turns lawful operators and participants in prediction markets into felons overnight,” said CFTC Chairman Mike Selig who added this suit alongside similar agency fights
- In the end, Chairman Cruz said, "The Supreme Court may have to decide the issue
- Senator Hickenlooper responded, "You're the first person who's told me you think that they think the CFTC is up to the standards
Summary
The fast-growing prediction markets sector where users bet on the outcome of events, including in sports and politics, was the focus of a hearing from the U.S. Senate Commerce Committee. Lawmakers from both parties were critical of cheating scandals, advertising practices and the potential for the industry to undermine gaming regulated by the states and tribes. Prediction markets platforms such as those run by Kalshi and Crypto.com drew two hours of critical questioning in a U.S. Senate Commerce Committee hearing, including scrutiny on the platforms' advertising practices, regulatory disputes and the cheating they may encourage. "We want athletes competing on merit, but the opportunity to make money can tempt gamblers, and sometimes even athletes themselves, to guarantee a sure bet," Senator Ted Cruz, a Texas Republican who chairs the committee, said during the Wednesday hearing. Cruz flagged some recent cases, saying: "NBA players and coaches are accused of manipulating performance and providing insider information to win bets.