CNBC: Despite regulatory uncertainty, the prediction market platform continues to expand and raise funds

NEW YORK, May 22 (CNBC) — Even as a bitter dispute simmers between the U.S. federal government and multiple states over which body has regulatory authority over prediction markets, platforms including Kalshi, Polymarket, Robinhood, and Coinbase are doubling down on expanding their operations. Seventeen states have already challenged these prediction market operators, with some framing sports-event prediction contracts as gambling — a classification that would shift oversight power to state-level regulators. But the U.S. Commodity Futures Trading Commission (CFTC) maintains these event contracts fall under the definition of derivatives, meaning they fall under federal purview instead. Congress has also stepped into the debate. James Comer, chairman of the U.S. House Committee on Oversight and Government Reform, has formally requested Kalshi and Polymarket to submit documents related to their insider trading prevention systems. Despite all this regulatory uncertainty, valuations for the key prediction market platforms keep skyrocketing. Kalshi’s latest post-funding valuation hits $22 billion, a jump from $11 billion just last December. Polymarket is reportedly valued at around $15 billion. Executives from Flutter Entertainment, DraftKings, and Robinhood have all stated they will keep investing in their prediction market businesses, noting the regulatory disputes are likely to evolve over the coming years.