Kalshi Hearing Tests Texas Authority Over Prediction Markets
Lead The Texas Senate State Affairs Committee heard testimony Tuesday on whether online prediction markets such as Kalshi should be treated as federally regulated financial exchanges or as gambling platforms subject to state oversight and restrictions. The hearing documented a continuing policy debate over how Texas might address the platforms and the limits that federal regulation could place on state action. The committee heard from Kalshi, gambling-policy experts, and gaming-industry representatives. Kalshi describes itself as the first CFTC-regulated exchange dedicated to trading on the outcome of future events. The company offers contracts tied to elections, sports, weather, and pop culture, and says it charges a flat fee of about one cent per transaction. Action Detail Kalshi head of enforcement and legal counsel Robert DeNault told the committee that the platform offers Texans a regulated financial product for trading and managing financial risk. He compared prediction-market contracts with derivatives and argued that products can have similarities to insurance or sports-related risk management without being regulated as gambling. DeNault also argued that an effort to prohibit a …









