U.S. Lawmakers Urge FTC to Investigate Prediction Markets

Nine Democratic members of the U.S. House of Representatives have called on the Federal Trade Commission (FTC) to investigate prediction markets. According to Odaily, Representatives Kevin Mullin and Gabe Vasquez expressed concerns that these platforms present themselves as financial tools offering investment products to regulators, while advertising to the public as gambling platforms. This conflicting messaging could potentially mislead consumers. The lawmakers have requested a detailed response from the FTC by June 29 regarding any plans to investigate or take enforcement action against prediction markets. Recently, these markets have come under scrutiny for issues related to insider trading, prompting Congress to initiate investigations into platforms like Polymarket and Kalshi in May.