Prediction Markets Unite to Safeguard Industry Interests
Formation of the Coalition for Prediction Markets
Leading prediction market companies in the United States have collaborated to establish a new alliance aimed at protecting the interests of their sector amidst ongoing opposition to event-based contracts. This alliance, named the Coalition for Prediction Markets, seeks to represent the industry’s concerns and challenge any misinformation or unfair criticism it faces.
A Commitment to Transparency and Consumer Protection
Tarek Mansour, founder of the prominent prediction market platform Kalshi, announced that his company has partnered with major players such as Crypto.com, Robinhood, Coinbase, and Underdog to launch the Coalition for Prediction Markets. The coalition is dedicated to ensuring transparency within the industry and advocating for enhanced consumer protection standards in light of persistent scrutiny from media, regulatory bodies, and established gambling interest groups.
Mansour highlighted that additional prediction market firms are expected to join the coalition in the near future. One of the coalition’s primary goals is to dispel misconceptions about event contracts and emphasize the benefits these markets offer, particularly their ability to capture collective intelligence from diverse participants.
Addressing Misinformation and Industry Challenges
The coalition’s creation comes at a critical time when the prediction markets sector faces a surge of misinformation. Mansour pointed out that powerful banking lobbies have unfairly criticized prediction markets to maintain their own monopolies. Simultaneously, traditional gaming industries have pushed back against the growth of prediction markets, labeling them as unregulated gambling despite the sector being overseen by the Commodity Futures Trading Commission (CFTC) and operating legally across all states.
Critics argue that prediction markets resemble gambling, but Mansour clarified key distinctions. Unlike casinos and sportsbooks, prediction markets do not have a “house” advantage, do not penalize winners, and operate within a transparent and competitive framework.
The coalition plans to collaborate with policymakers to better educate the public on how prediction markets function differently from traditional gambling and why they merit federal regulation akin to modern financial markets.
“Prediction markets deserve the same rigor as any modern financial market – clear rules and federal oversight. The best way to protect consumers is to keep these markets federally regulated, with consistent guardrails.”
Tarek Mansour, Co-founder & CEO, Kalshi
Recent Developments for Kalshi
In recent news, Kalshi has successfully obtained temporary relief in a legal dispute related to betting in Connecticut, marking an important win for the company amid ongoing regulatory challenges.
