Kalshi, Polymarket In Spotlight As US Regulators Reportedly Prepare New Betting Rules— Here's What Could Change

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.

U.S. regulators are reportedly set to propose a comprehensive set of regulations for prediction markets such as Kalshi and Polymarket . The move is aimed at preventing possible manipulation while still allowing most sports-related bets.

The Commodity Futures Trading Commission (CFTC) is preparing to propose new regulations that are designed to empower the commission to reject prediction wagers that are not in the public interest or are highly susceptible to manipulation, the Wall Street Journal reported on Wednesday.

The rules could affect certain sports-related trading markets, including wagers on player injuries and first-pitch outcomes. Markets tied to war, terrorism, or assassinations would likely be barred, as regulators do not consider them to be in the public interest.

A single bad hire can set a startup back years. Here are the 5 hires founders most often misjudge — and why

Still Learning the Market? These 50 Must-Know Terms Can Help You Catch Up Fast

The proposed rules do not outright prohibit any specific event contracts. Instead, they establish a framework for regulators to evaluate certain contracts individually, with the list of permitted activities expected to far exceed the prohibited categories.

Despite opposition from states with their own gambling laws, officials maintain that the intent is to allow the growth of prediction markets, including those focused on sports.