US House Democrats call for FTC probe into prediction markets
Nine Democratic US House lawmakers are urging the FTC to investigate prediction markets for potentially misleading advertising. They say platforms present themselves to regulators as financial tools or investment products, while marketing to users with sports-betting language and gambling-style framing. The lawmakers argue this contradictory messaging could confuse consumers about what rules and protections apply and may be used to sidestep state gambling regulations. Their letter asks the FTC to say by June 29 whether it plans investigative or enforcement action, whether it has received complaints, and whether it considers public marketing and legal filings when evaluating deceptive practices. The request comes amid broader scrutiny of prediction markets, including congressional inquiries into Polymarket and Kalshi over insider-trading concerns.
