Election officials have barred certain public workers from participating in prediction markets. The ban targets employees whose roles could create conflicts of interest or informational advantages when trading on event outcomes. The restriction reflects growing concern about insider-trading risks as prediction markets expand into politically sensitive domains.

Election officials in Maricopa County, Arizona, and Delaware County, Pennsylvania, have barred employees from betting on prediction markets ahead of the midterm elections. The officials say the bans are designed to guard against insider trading and protect public trust in the electoral process.

A former contestant on reality dating show 'FBoy Island' sued Kalshi Inc. for penalizing him for trading on its prediction markets about his own election-related outcomes. The lawsuit challenges the platform's enforcement actions against the trader.

An opinion piece argues that the Trump family's involvement with prediction markets will eventually force the IRS to clarify how gains from those platforms are taxed. The author notes that either Trump could theoretically push the IRS for tax-favorable prediction market rulings, but highlights the vast overlap between gambling and prediction market activity as a complicating factor. The IRS has so far remained silent on how to treat prediction market winnings, leaving traders in a gray area as the sector grows in political prominence.

Kalshi and Polymarket representatives rejected research suggesting small bets can shift U.S. election odds, a finding the two dominant U.S. prediction market platforms dispute publicly. A 933thedrive.com report on September 9 provided no details on the research methodology or specific counterarguments. The rejection comes as both platforms attract growing attention: an ETF launched targeting prediction market infrastructure, and press coverage tracks their expanding role in campaign politics and midterm narrative-shaping.

Kalshi's election and politics markets went live on DoubleZero Edge on Wednesday. The integration gives institutional and automated traders real-time access to Kalshi's political market data ahead of the November midterms. DoubleZero Foundation operates a decentralized infrastructure network for financial data distribution. The election market has $133 million in volume, reflecting growing institutional interest in prediction-market data feeds.

Kalshi on Wednesday asked the Ninth Circuit to rehear its Nevada sports contracts dispute en banc, with an 11-judge panel. The petition follows a federal appeals court loss that let Nevada regulate Kalshi's offerings as gambling, rejecting its federal preemption claim. Kalshi argues the court miscast its sports event contracts. The move came the same day New Jersey petitioned the Supreme Court to settle the growing circuit split over who regulates prediction-market sports contracts.

An Illinois lawmaker introduced legislation to repeal the state's transaction tax on prediction market trades. The bill would eliminate the levy that applies to regulated event-contract platforms operating in Illinois. Gov. JB Pritzker approved the tax months earlier as part of the state budget, amending sports betting law to treat certain sports-event contracts like wagers. The repeal push follows prediction market operators' expanded state-level lobbying to reduce trading friction.

The Tenth Circuit denied Kalshi's emergency motion for an injunction pending appeal on September 10. A district court had previously ruled in favor of Utah, and the appellate denial clears the state to enforce its gambling laws against Kalshi while the appeal proceeds. The article provides no further details on the grounds for the injunction sought or what form the state's crackdown might take. Kalshi appealed the lower court ruling.

An Iowa federal judge rejected Kalshi's request for a preliminary injunction on Tuesday, declining to block the state from enforcing gambling laws against the platform's sports event contracts. Judge Stephen Locher in the U.S. District Court for the Southern District of Iowa ruled that Iowa gaming regulators can continue pursuing state enforcement despite Kalshi's federal CFTC designation. The decision leaves the lawsuit active and marks another failed attempt by Kalshi to preemptively stop a state from treating its contracts as illegal gambling.

A research report examining more than 11,000 congressional race markets on Kalshi and Polymarket found that small bets can shift election odds on prediction markets. Representatives for both platforms rejected the findings. The study comes as the 2026 midterm elections approach and prediction market trading on electoral outcomes draws increased attention. Kalshi and Polymarket officials have contended that such trading is neither gambling nor a threat to election integrity.

The Tenth Circuit on Tuesday denied Kalshi's emergency motion to block Utah from enforcing gambling laws against the platform during its appeal. Two judges issued a brief ruling that Kalshi meets none of the requirements for a stay. The decision allows Utah to continue enforcement actions while the appeal proceeds. Separately, a federal judge in Iowa rejected Kalshi's attempt to block state regulation there, finding no clear congressional intent to preempt state gambling laws through the Commodity Exchange Act.

New Jersey's petition to the U.S. Supreme Court seeking review of its regulatory fight with Kalshi was formally docketed. Kalshi also lost court protection bids in Iowa and Utah. The state has asked the court to review the case via a writ of certiorari. Kalshi's chief regulatory officer discussed the petition with State Affairs. Kalshi has sued 15 states. No specifics on New Jersey's arguments or the Iowa and Utah rulings were available.

Prediction markets regulation has escalated to the Supreme Court's doorstep, according to multiple reports. The development follows multiple lawsuits filed in recent years over prediction market oversight. Specific details of any pending case or petition were not disclosed in the available reports. The issue has drawn closer to the nation's highest court as legal questions surrounding the regulatory framework for prediction markets intensify.

Three New Mexico pueblos and the Mescalero Apache Tribe wrapped up closing arguments Friday asking a federal judge to block Kalshi's sports-betting app on tribal lands. The tribal nations argue the CFTC-regulated prediction market's sports event contracts infringe on their gaming sovereignty and violate state and tribal gaming law. They are seeking an immediate injunction to halt Kalshi's operations in those areas. The case follows a new appeals court ruling that restores state regulators' oversight of the prediction market.

Trading volume on prediction markets is surging ahead of the 2026 U.S. elections even as multiple states move to ban the platforms as unlicensed casinos. The November contests are shaping up as a live test of whether heavy speculative activity on CFTC-registered venues influences actual races and results. No state actions, operator responses, or trading figures beyond the general volume trend were disclosed in available reporting.

Federal campaign finance records show Kalshi and its executives contributed at least $22,600 to Texas politicians, including Attorney General Ken Paxton, as the company battles states over its event-contract business. The donations surfaced in FEC filings reviewed by the Houston Chronicle. Kalshi is fighting legal challenges from multiple states over whether its prediction-market products constitute illegal gambling.

New Jersey's attorney general says the Supreme Court should weigh in on prediction markets, according to a Fortune article. The brief mention appears in a broader piece about energy markets and Elon Musk's Starlink. No further details on the AG's specific legal argument or timing are provided in the available text.

Three members of Congress have renewed criticism of FanDuel's VIP program. The lawmakers contend that FanDuel Predicts, the company's prediction market service, 'undermines the integrity of – if not bypasses – those very regulations.' The criticism focuses on whether the prediction market product circumvents existing regulatory frameworks.

Better Markets' Ben Schiffrin joined FOX 32 Chicago's Good Day Chicago on September 3 to discuss how platforms like Kalshi and Polymarket enable election gambling and the associated legal risks. The segment framed prediction markets as potentially undermining electoral integrity.