Democrats are preparing legislative action and congressional hearings targeting prediction markets such as Kalshi and Polymarket after their gains during the 2026 midterm elections. The platforms correctly forecast Democratic majorities in the House and Senate, and Kalshi’s market favorite won 479 of the first 487 races decided. Election-related contracts generated more than $3 billion in trading volume, including more than $2.5 billion on Kalshi alone. Lawmakers are citing insider trading, market manipulation and the gambling-like effects of wagering on political, military or terrorism-related events. A bipartisan letter from Elizabeth Warren and John Curtis also provides a signal of scrutiny that transcends partisan divisions.
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