Prediction markets platform Kalshi has opened a new office in Washington, D.C., as it ramps up efforts to shape federal and state policy amid growing scrutiny of its products across the United States.
Key Takeaways:
- Kalshi has opened a Washington office and hired seasoned policy veterans to deepen engagement with federal and state regulators.
- The CFTC-regulated platform leads prediction markets with $6.58 billion in monthly volume.
- State regulators continue to challenge Kalshi’s sports-related contracts.
The company hired veteran political strategist John Bivona as its first head of federal government relations, according to a recent announcement.
Bivona brings more than two decades of experience spanning political campaigns and federal agencies, including a stint as the first White House liaison at the Department of Homeland Security during the Biden administration.
He also previously served as chief of staff to former New York congressman Antonio Delgado and held senior roles at the Democratic Congressional Campaign Committee.
Kalshi Steps Up Policy Engagement as Prediction Markets Gain Traction
Kalshi said the move reflects its intention to engage more directly with policymakers as prediction markets gain traction.
The platform, which is regulated by the Commodity Futures Trading Commission, allows users to trade contracts tied to the outcome of future events, ranging from elections and economic data to entertainment and sports.
To strengthen its state-level outreach, Kalshi has also hired Blake Bee, a former senior manager of state and local public policy at Amazon.
Bee previously worked closely with state attorneys general and spent years at the National Association of Attorneys General, as well as in the Mississippi Attorney General’s Office.
Kalshi has emerged as the world’s largest prediction market by monthly volume.
The company reported $6.58 billion in trading volume in December, far outpacing rival Polymarket, which logged $2.28 billion over the same period. Trading activity surged last fall, coinciding with the start of the NFL season.
CEO Tarek Mansour said the platform processed roughly $441 million in volume in the first four days following kickoff.
Despite its rapid growth and federal license, Kalshi has encountered resistance from several US states over its sports-related contracts.
Regulators in states including Arizona, Tennessee, Connecticut and Massachusetts have argued that those offerings amount to unlicensed sports betting under state law.
Court rulings have been mixed. A federal judge in Nevada ruled last year that Kalshi must comply with the state’s gaming regulations, rejecting the firm’s argument that CFTC oversight overrides state authority.
Kalshi is appealing that decision. In contrast, a judge in Tennessee temporarily blocked state officials from stopping the platform’s sports contracts.
State Opposition to Prediction Markets Builds Over Consumer Concerns
State opposition to prediction markets has been building for months.
In 2025, the SWC urged the CFTC to prohibit sports event contracts, arguing that such products bypass state safeguards such as age verification, responsible gaming rules and anti-money laundering requirements.
As reported, a new legislation to limit the interactions between government officials and the prediction markets is being supported by more than 30 Democrats in the US House of Representatives, including former Speaker Nancy Pelosi.
The lure behind new restrictions is a controversial Polymarket bet, which started as a bet of $32,000 but eventually became more than $400,000 shortly before the unexpected detention of Venezuelan President Nicolás Maduro.
The bill proposed by the New York Representative Ritchie Torres is the Public Integrity in Financial Prediction Markets Act of 2026.
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