Key Takeaways
- Prediction market operator Kalshi has established Americans for Fair Markets (AFM), a new advocacy organization focused on influencing federal policy surrounding prediction markets.
- Taylor Budowich, who previously served in the Trump administration, has joined the organization as a strategic advisor.
- AFM’s debut coincided with House Oversight Committee Chair James Comer announcing investigations into potential insider trading activities on Kalshi and competitor Polymarket.
- The advocacy group frames itself in opposition to traditional gambling establishments, accusing sportsbooks and casino operators of disseminating misleading narratives about prediction markets.
- Traditional gaming industry representatives have countered by characterizing prediction markets as disguised sports betting platforms.
The federally regulated prediction market operator Kalshi has unveiled a new advocacy organization known as Americans for Fair Markets. This entity seeks to shape legislative and regulatory perspectives on prediction markets across the country.
Taylor Budowich, who held a senior position in President Donald Trump’s White House administration, has been brought on board as the group’s strategic advisor. Budowich’s previous roles included managing communications for both the White House and a Trump-supporting super PAC before departing in September.
While Kalshi provided initial support for AFM’s creation, representatives indicate the organization includes additional members. A spokesperson characterized the group as having substantial financial resources but refused to disclose specific funding amounts.
AFM positions its mission as combating what it describes as misleading information about prediction markets allegedly disseminated by traditional gambling operators. According to the group, established sportsbooks and casino companies are attempting to safeguard their market position by portraying prediction markets negatively.
“Entrenched monopolistic interests won’t outspend us or outmaneuver our organizational efforts,” stated John Bivona, Kalshi’s government relations director, who now serves on AFM’s board.
Congressional Investigation Announced Simultaneously
AFM’s public debut occurred on the identical date that House Oversight Committee Chair James Comer revealed investigations examining insider trading allegations at both Kalshi and Polymarket. Comer referenced questionable wagers placed before military operations involving Venezuela and Iran, situations that have already resulted in arrests domestically and in Israel.
Kalshi has publicly expressed support for Commodity Futures Trading Commission oversight. Meanwhile, jurisdictional disputes have emerged between the CFTC and state authorities, with states contending that prediction markets breach local gambling regulations.
While Polymarket maintains a regulated US operation, the majority of its transaction volume flows through international channels. Kalshi, conversely, functions predominantly as a federally regulated exchange platform.
Traditional Gaming Sector Responds
The American Gaming Association has adopted a firm position against prediction market platforms. During congressional testimony this week, the organization’s president and CEO, Bill Miller, characterized these services as operations “deceptively labeling sports wagering as financial instruments and investment opportunities.”
In contrast, AFM’s online presence contends that prohibiting prediction markets would drive them to “offshore unregulated environments lacking identity verification, consumer safeguards, or insider trading enforcement.”
AFM represents part of a larger advocacy effort that includes the Coalition for Prediction Markets, which emerged in December 2025 with backing from Coinbase, Crypto.com, and Robinhood.
The organization states it will champion platforms implementing consumer protections including identity verification requirements, insider trading prohibitions, and restrictions preventing markets related to violence or terrorist activities.
President Trump has expressed inconsistent views regarding prediction markets. He indicated dissatisfaction with these platforms last month, though he subsequently moderated his stance, warning that prohibiting them would leave the United States behind internationally. His son, Donald Trump Jr., maintains investment interests in Polymarket and holds positions on both Polymarket’s advisory board and as an advisor to Kalshi.
Following a recent $1 billion financing round, Kalshi’s valuation has surged to $22 billion, representing a twofold increase.
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