Commercial and tribal casinos are going head-to-head with prediction markets in funding lobbyists to represent their interests as the fight for the legality of sports event contracts intensifies.
Kalshi CEO Tarek Mansour accused casino lobbyists of being behind recent attempts to pass legislation outlawing the markets.
Senator Adam Schiff co-sponsored the Prediction Markets are Gambling Act last week. Tribal casino groups are some of the biggest donors to Schiff’s campaigns.
The Federated Indians of Graton Rancheria in the Bay Area and the Agua Caliente Band of Cahuilla Indians both contributed $100,000 to a pro-Schiff PAC.
The tribal groups have fought hard to keep exclusive control of gambling in California. The two tribes contributed over $40 million to a campaign opposing Proposition 26, which would have legalized sports betting in the state.
Kalshi has run ads in the past with the tagline, “Sports betting in California is now legal.” It is no surprise that tribal-backed politicians are therefore increasing efforts to stop the company.
Schiff is also a co-sponsor of a bill that seeks to ban government officials from using insider information to profit from event contracts.
Kalshi Fights Back With Funding
On the other side, Mansour and Kalshi are ramping up their efforts to defend the legality of sports prediction markets. The company spent over $1 million on lobbying efforts last year. Only two gambling groups, the American Gaming Association (AGA) and the Gila River Indian Community, spent more.
The AGA includes many tribal groups, and several members have strongly opposed sports event contracts. This has led to friction within the organization and to the departure of FanDuel and DraftKings, as the companies launch their own prediction market platforms.
Kalshi’s biggest spend last year was $430,000 to Miller Strategies LLC for “issues regarding rule proposal before the CFTC.” The group works closely with Donald Trump Jr., who serves as an advisor to both Kalshi and Polymarket.
Several other Trump-appointed officials also have a vested interest in preserving the legal status of sports prediction markets. According to ProPublica, three have assets in Kalshi, 46 have ties to Robinhood, and 138 are linked to Coinbase.
Trump Media has also partnered with Crypto.com, a deal which will see the platform’s markets integrated into Truth Social.
Money Helps Change Minds
Kalshi also gave $180,000 to the Lincoln Policy Group last year. This helped its founder, former Sen. Blanche Lincoln, change her stance on sports event contracts.
Previously, she said that sports contracts “would not serve any real commercial purpose. Rather, they would be used solely for gambling.”
She is now registered as a Kalshi lobbyist. In July last year, she wrote to the CFTC urging the organization not to restrict sports markets.
The formation of the Coalition for Prediction Markets will lead to increased lobbying efforts. Its members, which include Kalshi, Coinbase, and Robinhood, can compete with the casino lobby groups, according to experts.
“We believe these groups have the balance sheets to sustain prolonged political influence and lobbying efforts,” Citizens analyst Jordan Bender told Sportico.
Casino and gambling-backed groups spent almost $50 million on lobbying last year, more than any other year in history. They may have to increase that again as prediction markets ramp up their efforts.
The post Casino & Prediction Market Lobbying Ramps Up as Legal Battle Intensifies appeared first on CasinoBeats.
Commercial and tribal casinos are going head-to-head with prediction markets in funding lobbyists to represent their interests as the fight for the legality of sports event contracts intensifies. Kalshi CEO Tarek Mansour accused casino lobbyists of being behind recent attempts to pass legislation outlawing the markets. Senator Adam Schiff co-sponsored the Prediction Markets are Gambling
The post Casino & Prediction Market Lobbying Ramps Up as Legal Battle Intensifies appeared first on CasinoBeats.