Prediction market platforms have come together to form the Coalition for Prediction Markets (CPM). The trade group states that its goal is to enhance consumer access to prediction markets amid ongoing legal scrutiny.
The group launched its own website, which highlights its founding members: Kalshi, Crypto.com, Underdog, Coinbase, and Robinhood. A press release said Kalshi and Crypto.com are the driving forces behind the group’s formation.
The impetus appears to be a growing number of legal challenges to the legal status of prediction markets, particularly related to sports. In the release, the CPM stated, “The coalition launches as several state casino regulators attempt to extend their authority into a space long governed under federal law — a shift that creates confusion, restricts consumer access, and pushes Americans toward offshore or unregulated platforms.”
A similar argument is put forward by gambling trade groups, such as the American Gaming Association (AGA), the Social and Promotional Games Association (SPGA), the Sports Betting Alliance (SBA), and the Betting and Gaming Council (BGC) in the UK.
Partners Unite With Rivals Missing
Kalshi and Robinhood already have their own coalition, with the latter offering the former’s markets through its app. Similarly, Crypto.com and Underdog signed a deal that allows Underdog to feature Crypto.com’s markets on its platform. The two couples are joined by Coinbase, which is preparing to launch a prediction market platform.
Other companies have not signed up to the group as yet. The primary candidate would be Polymarket, but the company and Kalshi have thus far positioned themselves as rivals. The platforms have made similar partnerships, notably with PrizePicks, and both have Donald Trump Jr. as a strategic advisor.
Additionally, major sportsbooks FanDuel, DraftKings, and Fanatics have not signed up despite launching their own prediction market platforms. FanDuel and DraftKings both left the AGA as they prepare to focus on the opportunity prediction markets have presented. If they signed up for the CPM, it would be a strong indication that prediction markets, rather than regulated sports betting, are their preference.
Coalition Will Work Against Insider Trading
Interestingly, one of the stated aims of the group is to work against insider trading. The statement said, “The Coalition’s early work will focus on reinforcing the federal framework governing prediction markets. Central to this work is establishing and educating on nationwide standards for integrity – guardrails that prevent insider trading and ensure all participants operate on equal footing.”
One of the concerns about prediction markets has been the lack of a clear framework against insider trading. There have been some notable recent examples that have highlighted how easily markets can be manipulated.
Sara Slane, Executive Board Member of the Coalition and Head of Corporate Development at Kalshi, reiterated the group’s stance, stating, “From day one, we wanted to be regulated. We spent years working with the CFTC because prediction markets must operate with strong federal safeguards that prevent insider trading, protect consumers, and ensure these markets remain transparent and corruption-free.”
The CEO of fellow member Coinbase, Brian Armstrong, was less clear on whether the company opposes insider trading. Speaking after an incident where he reeled off a series of words from mention markets at Polymarket and Kalshi, Armstrong said the matter is not clear-cut.
Faryar Shizad, Chief Policy Officer at Coinbase, did not explicitly state that the company joined the group to fight against insider trading. He stated, “At Coinbase, our mission is to deliver financial freedom to the world – and prediction markets by nature democratize fact finding and the seeking of truth.”
Armstrong, as well as Polymarket CEO Shayne Coplan, said that in seeking the truth, insider trading is valuable. If those with insider knowledge disclose it to the market, then the market becomes a more accurate predictor.
Current Legal Battles for Prediction Markets
Another primary aim of the CPM is to counter state regulators who oppose prediction markets. Kalshi has largely taken on the responsibility of fighting for the industry’s legal status in courts.
The platform is involved in 18 active lawsuits. Additionally, eight states have issued warnings to licensed sports betting companies about entering the prediction market industry. Washington and Louisiana were the latest states to issue strong statements in opposition.
The coalition said it “will defend against state-level overreach, including issues tied to sports, elections, and financial and economic indicators, and advance clear, consistent standards for integrity and transparency.”
There will undoubtedly be more challenges in courts across the country. California’s Attorney General Rob Bonta is reportedly preparing legal action. His opposition to DFS has led to many operators withdrawing from the state.
The CPM hopes its members do not have to make similar moves, and impending action in the country’s most populous state may well have been one of the catalysts that led to the group’s formation.
The post Coalition for Prediction Markets Vows to Fight Against Insider Trading & State Regulators appeared first on CasinoBeats.
Prediction market platforms have come together to form the Coalition for Prediction Markets (CPM). The trade group states that its goal is to enhance consumer access to prediction markets amid ongoing legal scrutiny. The group launched its own website, which highlights its founding members: Kalshi, Crypto.com, Underdog, Coinbase, and Robinhood. A press release said Kalshi
The post Coalition for Prediction Markets Vows to Fight Against Insider Trading & State Regulators appeared first on CasinoBeats.