Prediction Markets Face Federal-State Clash

0:00Prediction markets are blowing up, letting folks bet on real-world events like elections, sports, and awards through yes or no contracts. Big players like Kowshi, a regular U.S. exchange, and Polymarket, a crypto platform now back in the mix, have deals with sports leagues and news. Outlets, but states in Congress are cracking down over fears of fraud, insider trading, and gambling issues. The big clash is federal versus state control. The Commodity Futures Trading Commission claims sole power over these markets, backed by the Trump team, including Chairman Michael Selig. Meanwhile, Connecticut's Attorney General, William Tong, and others say they're dodging state gambling laws, sending cease and desist letters to outfits. Like Kowshi and Robin Hood. Connecticut allows license sports betting from Draft Kings and Fan Tools since 2021, but prediction markets skirt those rules. Folks are fired up about suspicious bets right before major events, like U.S. strikes on Iran or Venezuela's leader capture, hinting at insider info.

1:02From government insiders, platforms are adding safeguards and ethics rules bar federal workers from gambling with non-public info. Critics worry these markets fuel addiction and operate where sports betting's banned in 11 states. Connecticut senators are leading the charge in Congress. Richard Blumenthal's bill bans insider trading, manipulative bets on wars or deaths, and targeting under 21s or addicts, plus requires user, verification. Chris Murphy's measure goes harder, outlawing wagers on terrorism, assassinations, or rigged outcomes like award winners or speech-word counts. As these bills face a Republican-led Congress, the tug of war between feds, states, and platforms keeps heating up with more rules likely on them. Verizon to balance innovation and protection. I'm Cory with the story, and you've been listening to Hartford News today, AI-powered local news.