Report Indicates Kalshi and Polymarket Excluded from FTC Sports Gambling Inquiry

Leading prediction market platforms, Kalshi and Polymarket, are reportedly not among the entities currently under scrutiny by the US Federal Trade Commission (FTC) in its examination of the sports gambling sector. This development suggests that the regulatory body's focus, at least for this particular inquiry, may not extend to these specific event contract platforms.

Prediction markets allow users to trade contracts based on the outcome of future events, providing a mechanism for individuals to express their beliefs about the likelihood of various occurrences. Unlike traditional sports betting, which typically focuses on direct wagers on sporting event outcomes, prediction markets can encompass a wider array of verifiable future events, from economic indicators to political results.

While the nature of the FTC's broader sports gambling probe has not been fully detailed, the reported exclusion of Kalshi and Polymarket from its scope highlights a potential distinction regulators might be drawing between different forms of online event-based forecasting and traditional sports betting operations.

Kalshi operates under regulatory oversight from the Commodity Futures Trading Commission (CFTC) as a designated contract market, offering event contracts on a variety of topics, including economic and financial data. Polymarket, on the other hand, is a decentralised platform known for its markets on political events, cultural trends, and more, utilising blockchain technology for its operations.