Prediction Markets Build Washington Presence as Legislative Pressure Mounts

The prediction market industry has expanded its lobbying and public affairs operations in Washington in early 2026, as Congress introduces a wave of proposed legislation targeting the sector.

Official lobbying disclosures from 2025 show the industry’s two largest players, Kalshi and Polymarket, spent a combined roughly $1 million.

Those figures, however, do not capture more recent developments. In the first months of 2026, both companies have scaled up their presence in Washington in ways that will not appear in public filings until later this year.

A Nascent Operation Goes Pro

Kalshi, the CFTC-regulated U.S. market leader, has moved beyond external lobbying contracts. The company has opened a dedicated government relations office in Washington, led by a former Biden administration official, and brought on former senior Obama adviser Stephanie Cutter as a policy consultant.

A new trade group, the Coalition for Prediction Markets, has also been formed to represent a unified industry position. Led by a former U.S. congressman, it includes regulated U.S. players such as Kalshi, Coinbase, and Robinhood.

Polymarket, which has historically taken a lower-profile approach in Washington, is also building a physical presence. The company has been experimenting with a pop-up venue in downtown D.C. as an informal way to engage policymakers.

Legislative Pressure is Building

The expansion of lobbying infrastructure comes as legislative activity has accelerated in 2026. Congress has introduced at least 13 bills targeting the prediction market industry this year.

These range from narrower bipartisan proposals to restrict insider trading by federal officials — which the industry has largely supported — to broader measures that could affect core products.

One bill co-sponsored by Senator Adam Schiff would ban sports-related contracts on federally regulated exchanges. Sports contracts currently account for a large share of trading volume on platforms such as Kalshi.

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Implications for the Industry

The prediction markets industry is now navigating multiple regulatory tracks at once. Earlier legal disputes have not disappeared, but policy debates in Congress are becoming a central arena.

Official 2026 lobbying disclosures are not yet available. However, the pace at which firms are adding personnel, offices, and coordinated industry groups suggests spending on political influence is increasing faster than current public data indicates.