Nine US House Democrats have asked the Federal Trade Commission (FTC) to investigate prediction markets for potentially deceptive advertising practices. They are concerned these platforms may be marketed as gambling sites to consumers while being presented as financial tools to regulators.
The request highlights potential regulatory risks for prediction markets and signals ongoing congressional interest in the oversight of these platforms, particularly concerning their advertising and operational integrity.
Nine Democratic lawmakers in the US House of Representatives have formally requested that the Federal Trade Commission (FTC) launch an investigation into prediction markets. The lawmakers, including Representatives Kevin Mullin and Gabe Vasquez, are seeking to understand how these platforms advertise to their customers in contrast to how they present themselves to regulatory bodies. Specifically, they are concerned that prediction markets might be marketed as gambling platforms to the general public while being described as financial tools offering investment products to regulators. The request also includes an inquiry into whether the FTC has any existing plans for investigative or enforcement actions against these prediction markets due to potential deceptive practices. This call for an FTC probe follows previous scrutiny of prediction markets, including an inquiry launched by Congress in May into Polymarket and Kalshi concerning allegations of insider trading on their platforms and the companies' responses to such incidents.