A handful of the top names in the prediction market world announced Thursday morning they have teamed up to launch their own trade group.
The Coalition for Prediction Markets, led by Kalshi and Crypto.com, and including Coinbase, Robinhood, and Underdog — but not, as of yet, Polymarket — is a group of operators that have come together with a unified voice as the battle over the legality of prediction markets (specifically as it pertains to sports betting) heats up in numerous states.
“The U.S. is the biggest frontier for prediction markets, and the momentum we’re seeing makes a unified industry voice not just important, but necessary,” Matt David, executive board member of the coalition and president of North America and chief corporate affairs officer at Crypto.com, said in a press release. “Prediction markets are a new layer of civic infrastructure — public-good technology that gives people clearer insight and helps institutions make better decisions. They democratize financial participation by rewarding what people know, not who they know. As consumer interest accelerates and regulation evolves, this coalition will champion responsible, transparent growth to ensure the benefits of prediction markets reach the broader public.”
Also notably missing from the coalition are DraftKings, FanDuel, and Fanatics. All three companies recently left the American Gaming Association over the prediction market fight.
Underdog, a charter member of the coalition, also revealed Wednesday it is shuttering its North Carolina online sportsbook, effective next Monday, Dec. 17. That was the only state in which Underdog was operating a traditional sportsbook (it was set to launch in Missouri, but pulled out at the last minute).
‘Americans deserve clarity’
The coalition will seek to smooth out and make clear the laws surrounding prediction markets, namely — at least to the prediction market operators’ eyes — that states have no business regulating a federal product, and that the current set-up with the Commodity Futures Trading Association (CFTC) being the be-all, end-all for regulation serves everyone just fine.
“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,” Sara Slane, executive board member of the coalition and head of corporate development at Kalshi, said in the release. “Americans deserve clarity, not 50 conflicting interpretations. As the first federally regulated prediction market, Kalshi saw firsthand how quickly this space was growing — and how urgently a unified industry voice was needed to advocate for access and consistency nationwide.”
The release notes that “additional companies” are in talks to join the coalition.
