Democrats Press CFTC Chair; Kalshi Logs $545M at The Masters

At a House Agriculture Committee hearing Thursday, Democratic members questioned Commodity Futures Trading Commission Chair Mike Selig about oversight of prediction markets, including platforms Kalshi and Polymarket and alleged connections between those platforms and members of the Trump family. Lawmakers raised concerns about potential insider trading and whether the CFTC has the staff and legal authority to police new event contracts.

Rep. Jim Costa told the chair, “Companies try to hide behind federal law and call it innovation. It’s not innovation, it’s a bet.” Republicans on the panel asked fewer questions. Selig told the committee the agency takes the matter seriously and pointed to the CFTC’s broad definitions of commodities and swaps, but he did not announce new rulemaking or enforcement actions.

Kalshi reported $545 million in trading during The Masters, with $460.3 million on the market for who would win the tournament. The surge in activity coincided with Rory McIlroy winning his second straight Green Jacket. Company officials and industry observers said the total ranks among the platform’s largest single-event volumes. Trading volume on prediction markets measures exchange activity and is not directly equivalent to sportsbook handle.

Lawmakers also discussed alleged insider trading in sports and event markets. A court filing shows former NBA assistant Damon Jones is scheduled to change his plea on April 28 after prosecutors accused him of providing injury information about LeBron James and Anthony Davis to gamblers. Jones faces an additional indictment alleging involvement in fixed poker games.

Policy proposals were raised in recent days. Rahm Emanuel proposed a 10% federal tax on gambling operators and prediction markets, projected to raise $30 billion to $50 billion a year. In Ohio, state Sen. Bill Blessing introduced a bill to impose a 2% fee on all sports bets. Officials and industry groups are assessing how such levies would affect consumers and operators.

Separately, operators continue to expand in the U.S. Bet365 launched in Michigan and announced partnerships with the Detroit Tigers and Red Wings as part of its state rollout. In Virginia, lawmakers moved to overturn a gubernatorial veto on a proposed Fairfax County casino. The hearing and these industry developments come amid ongoing debate over the CFTC’s authority to regulate event contracts, which are exchange-traded contracts that pay out based on event outcomes.