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Prediction markets reached a turning point as major platforms chose collaboration over going it alone. A new industry group now aims to shape policy debates while pressure grows from state regulators.
Good to Know
Prediction market operators Kalshi and Crypto.com announced the creation of the Coalition for Prediction Markets on Thursday. The group, known as CPM, also lists Robinhood, Coinbase, and Underdog among its members.
The coalition is based in Washington DC and enters the scene as prediction markets work to secure stable regulatory footing. While these markets register and operate under oversight from the U.S. Commodity Futures Trading Commission, state gambling regulators have questioned legality, especially for contracts tied to sports outcomes that resemble sportsbook offerings.
Industry leaders see CPM as a way to strengthen representation in policy discussions. Collective advocacy may also help address concerns around consumer protection, transparency, and market standards following rapid expansion.
CPM states a goal to expand consumer access to safe, transparent, and integrity driven prediction markets across the country. The group takes a direct stance against state level challenges, arguing that some regulators prioritize control and revenue instead of innovation and consumer choice.
Kalshi stands to benefit heavily from the coalition launch. The company faces legal disputes in more than half a dozen states. Presenting prediction markets as products with federal safeguards similar to regulated sportsbooks supports its broader strategy.
Sara Slane, Kalshi’s head of corporate development and CPM executive member said, “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.”
CPM plans to recruit additional companies, though some major names remain absent. Polymarket, which continues steps toward a return to the United States market, does not yet appear on the member list.
DraftKings and FanDuel also remain outside the coalition. Both sportsbook leaders recently entered prediction markets and dropped membership in the American Gaming Association after disagreements over prediction market policy.
Coalitions tend to carry more influence with broader participation. CPM may look to attract newer entrants preparing launches, including Fanatics and Betr, as the market continues to evolve.
A Washington based group formed to represent prediction market operators in regulatory and policy discussions.
Kalshi, Crypto.com, Robinhood, Coinbase, and Underdog appear on the member list.
Some states challenge sports related event contracts, arguing they resemble sportsbook betting.
Prediction markets register and operate under CFTC oversight at the federal level.