Prediction Markets Kalshi and Polymarket Face Regulation

Wall Street or Vegas? Prediction market in New York under scrutiny amid insider trading, gambling concerns - CBS New York All News NY News Bronx News Brooklyn News Harlem News Long Island News Northern Suburbs Queens News NJ News CT News Investigations Politics Education Transportation Crime Housing Arts & Entertainment Climate & Environment Health & Wellness Aging & Caregiving First Alert Weather Radars & Maps CBS2 Weather Map CBS2 Weather Watchers First Alert Weather 101 Share Photos & Videos All Sports Giants Yankees Knicks Rangers Islanders Jets Mets Nets Devils CBS Sports HQ Odds Latest News CBS New York Investigates Book Club with Mary Calvi Class Act with Chris Wragge #BetterTogether Breaking The Stigma Furry Friend Finder Sandy The 5:33 | Legacy of the LIRR Massacre On The Dot with David Schechter: Wildfires & Climate Change Climate Change: Protecting our Planet Station Info WCBS-TV WLNY-TV Contact Us Advertise Contests & Promotions Galleries Links & Numbers Download Our App Memorials Watch CBS News As prediction markets like Kalshi and Polymarket become more popular, lawmakers from New York City to Washington, D.C., are scrambling to create new rules against insider trading and reckless gambling. Their worries compounded when a Polymarket trader put $32,000 on the downfall of Venezuelan dictator Nicolás Maduro hours before President Trump announced he was captured by U.S. forces . The anonymous user made more than $400,000. Financial trading experts said it reeked of insider trading and they're worried it could keep happening. Traders or gamblers? Currently, Polymarket users are guessing whether Mr. Trump will acquire Greenland this year or if Israel will strike Iran. On Kalshi , traders favor Vice President JD Vance as the next president and the Seattle Seahawks to win Super Bowl LX in February. The prediction market sites say their users are more suited for Wall Street than the Vegas Strip. They're financial traders, not gamblers, in their view, which makes a big difference when it comes to regulations. Advertisements by the American company Polymarket predict a victory for Zohran Mamdani in the New York City mayoral election on Tuesday, Nov. 4, 2025. Olga Fedorova / AP "Every time I feel lucky, I put some bets on there. I know it's not betting, but, I gamify it," said Zaid Abdulhadi, a Kalshi trader. "Even though they say they're different, they're closer to gambling than it is kind of an options trade." "We're dealing with a new animal" The New York State Gaming Commission , which regulates gambling, sent Kalshi a cease and desist letter saying the company offers sports betting without a state license. Kalshi responded with an ongoing lawsuit against the state, arguing it's a trading platform so only the Federal Commodity Futures Trading Commission has regulatory authority. "We're dealing with a new animal," said State Assemblymember Clyde Vanel . Vanel, a Democrat from Queens, introduced a bill to ban trading on many types of

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