(AsiaGameHub) – Commercial and tribal casinos are actively engaging lobbyists to represent their interests, engaging in a competitive effort against prediction markets as the debate over the legality of sports event contracts intensifies.
Kalshi CEO Tarek Mansour has alleged that casino lobbyists are behind recent legislative efforts aimed at prohibiting prediction markets.
Senator Adam Schiff was a co-sponsor of the Prediction Markets are Gambling Act introduced last week. Tribal casino groups are among the significant contributors to Schiff’s campaigns.
The Federated Indians of Graton Rancheria in the Bay Area and the Agua Caliente Band of Cahuilla Indians each donated $100,000 to a pro-Schiff PAC.
These tribal groups have vigorously worked to maintain their exclusive control over gambling operations in California. The two tribes collectively contributed over $40 million to a campaign that opposed Proposition 26, a measure that would have legalized sports betting in the state.
Kalshi has previously run advertisements with the slogan, “Sports betting in California is now legal.” Consequently, it is unsurprising that politicians supported by tribal interests are intensifying their efforts to impede the company.
Schiff is also a co-sponsor of legislation designed to prevent government officials from profiting from event contracts by using insider information.
Kalshi Responds With Increased Funding
On the opposing side, Mansour and Kalshi are escalating their efforts to advocate for the legality of sports prediction markets. The company allocated over $1 million to lobbying initiatives last year. Only two gambling organizations, the American Gaming Association (AGA) and the Gila River Indian Community, invested more in lobbying.
The AGA comprises numerous tribal groups, and several of its members have strongly opposed sports event contracts. This has created internal discord within the organization, leading to the departure of FanDuel and DraftKings as they introduce their own prediction market platforms.
Kalshi’s largest expenditure last year was $430,000 to Miller Strategies LLC for “issues regarding rule proposal before the CFTC.” This firm collaborates closely with Donald Trump Jr., who serves as an advisor to both Kalshi and Polymarket.
Furthermore, several officials appointed by Trump have a vested interest in maintaining the legal standing of sports prediction markets. According to ProPublica, three of these officials hold assets in Kalshi, 46 have connections to Robinhood, and 138 are linked to Coinbase.
Trump Media has also entered into a partnership with Crypto.com, a deal that will integrate the platform’s markets into Truth Social.
Financial Influence Drives Stance Changes
Kalshi also provided $180,000 to the Lincoln Policy Group last year. This financial support contributed to a shift in the stance of its founder, former Sen. Blanche Lincoln, regarding sports event contracts.
Previously, she had stated that sports contracts “would not serve any real commercial purpose. Rather, they would be used solely for gambling.”
She is now registered as a lobbyist for Kalshi. In July of the previous year, she sent a letter to the CFTC, urging the organization not to impose restrictions on sports markets.
The establishment of the Coalition for Prediction Markets is expected to result in intensified lobbying efforts. According to experts, its members, including Kalshi, Coinbase, and Robinhood, are positioned to rival the casino lobby groups.
“We believe these groups have the balance sheets to sustain prolonged political influence and lobbying efforts,” Citizens analyst Jordan Bender informed Sportico.
Last year, casino and gambling-affiliated groups spent nearly $50 million on lobbying, a record high. They may need to increase this spending further as prediction markets intensify their advocacy.
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