Story perspectives

Trump Supports Prediction Markets Amid Legal Battles

2/18/2026

Center

Trump Supports Prediction Markets

U.S. President Donald Trump backs Kalshi and Polymarket in a fight over prediction-market regulation.
Commodity Futures Trading Commission chair Michael Selig says the agency will uphold federal authority over these markets.
States like Nevada have filed lawsuits claiming the platforms operate illegal gambling.
Twenty-three Democratic senators have urged the CFTC to limit its intervention in litigation.
The outcome could reshape the U.S. sports betting landscape.

Right

Kalshi Blocks Users

Kalshi blocked users in New Zealand after Vicki Scott, the New Zealand gambling regulator, deemed Kalshi and Polymarket illegal under local laws.
New Zealand's gambling laws differentiate wagering and online casinos, with online betting monopolized by TAB.
The Financial Markets Authority has not engaged with prediction markets but may classify them as derivatives, complicating their legal status.
Polymarket continues to assert its legitimacy as a U.S. financial market.

History

Historical Context

The Commodity Futures Modernization Act of 2000 significantly expanded derivatives markets, leading to the rise of prediction platforms like Kalshi and Polymarket. By 2025, these markets faced legal challenges from states like Nevada, which argued they violated gambling laws. The outcomes of these disputes could reshape the landscape of sports betting and online gambling in the U.S., reflecting ongoing tensions between federal and state regulations.

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Trump Supports Prediction Markets

U.S. President Donald Trump backs Kalshi and Polymarket in a fight over prediction-market regulation.
Commodity Futures Trading Commission chair Michael Selig says the agency will uphold federal authority over these markets.
States like Nevada have filed lawsuits claiming the platforms operate illegal gambling.
Twenty-three Democratic senators have urged the CFTC to limit its intervention in litigation.
The outcome could reshape the U.S. sports betting landscape.

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