Prediction Markets Band Together to Protect the Sector’s Interests

Some of America’s biggest prediction markets companies have joined forces to create a new coalition that will protect the sector’s interests amid continued pushback against event contracts. The so-called Coalition for Prediction Markets will provide the industry with a voice, allowing it to dispute claims it believes to be wrongful.

The Coalition for Prediction Markets Will Champion Transparency

Tarek Mansour, the founder of prediction markets powerhouse Kalshi, said that his platform has teamed up with Crypto.com, Robinhood, Coinbase, and Underdog to create the Coalition for Prediction Markets and provide the prediction markets sector with a voice.

According to Mansour, the coalition will protect the transparency of the sector and promote higher customer protection standards amid continued bombardment from the media, regulators and traditional gaming lobbies. He said that he expects more prediction market companies to join the new body in the coming months.

One of the coalition’s missions will be to refute some of the misconceptions surrounding the event contracts sector and highlight its positive impact and the opportunities it provides to “harness the wisdom of crowds.”

The Launch Comes Amid an Increased Flow of Misinformation, Mansour Says

Mansour explained that now was the perfect time to launch the coalition due to the continued spread of misinformation by enemies of the prediction markets sector. He noted that the bank lobby has slammed prediction markets as unsafe while protecting monopolies.

At the same time, prediction markets have been facing pushback by the traditional gaming industry as regulators and stakeholders alike have opposed the vertical, slamming it as unregulated betting.

Unlike traditional gaming operators, prediction markets are regulated by the CTFC and, as a result, are allowed to operate in all states. Their opponents, however, believe that this model is unfair and have cited statistics showing that many customers recognize prediction markets as gambling.

With this discourse in mind, the new coalition will team up with policymakers to educate the public about how prediction markets work and how they differ from casinos and sportsbooks, Mansour said. He added that some of the key differences are that there is no “house” and no penalty for winning, and that people can trade in a “transparent and competitive environment.”

Prediction markets deserve the same rigor as any modern financial market – clear rules and federal oversight. The best way to protect consumers is to keep these markets federally regulated, with consistent guardrails.

Tarek Mansour, co-founder & CEO, Kalshi

In the meantime, Kalshi just secured temporary relief in a betting dispute in Connecticut.