--- title: "Democrats Preparing Crackdown on Prediction Markets" description: "Democrats are reportedly working to bring the legislative hammer down on prediction markets, a key money-maker for White House insiders." date: "2026-11-10" modified: "2026-11-10" authors: - name: "Joe Wilkins" job_title: "Correspondent" link: "https://futurism.com/authors/jwilkins.md" url: "https://futurism.com/future-society/democrats-regulation-crackdown-prediction-markets" categories: - "Finance" - "Future Society" --- # Democrats Preparing Crackdown on Prediction Markets ![Kalshi Prediction Market Trading App Displayed On Smartphone]() *Shutterstock / Futurism* With a broad mandate to mop up the [corrosive]() [graft]() seeping out of Washington DC under Donald Trump's second administration, Democrats are reportedly preparing to bring the legislative hammer down on prediction markets — tech moneymakers era with deep ties to the White House. That's [according to *Politico*](), which reports that Democrats are preparing to curb what California representative Maxine Waters called "predatory lending and predatory platforms, including prediction markets, so that our constituents keep more of their hard-earned dollars in their pockets." As Oregon Democratic Senator Jeff Merkley told *Politico*, "we need to rein in this gambling, and with Democrats taking back control of Congress, now is the time for long-overdue legislative action." Beyond protecting consumers from predatory gambling companies, the agenda has the added effect of targeting a key source of income for the Trump family dynasty. Trump's eldest son, Donald Trump Jr, has emerged as a strong supporter of prediction markets, earning him advisory roles on the boards of Polymarket and Kalshi at the same time that [inside]() [traders]() cashed in on advanced knowledge of Trump administration moves. And while prediction markets are still going strong currently, the looming crackdown has the attention of financial experts, one of whom said the regulatory regime could get "pretty intense." "These guys don't have an ally in Congress," a former Wall Street regulator, who was granted anonymity, told *Politico*. "To a certain extent, they might even be the new crypto as far as congressional attention from Democrats," they said, referring to the [broadly antagonistic stance]() Democrats held toward the crypto industry under the Biden administration. But when it comes to fighting hard for any regulatory regime, the proof will be in the pudding. Democrats have reportedly begun preparation for a similar crackdown on the [AI industry]() — an effort which is [broadly popular]() with voters, but which poses a major challenge for the party's [pro-business leadership](). **More on politics:** *[Americans Just Resoundingly Rejected AI Data Centers]()* ## Author At Futurism, I focus on the intersection of technology and power — examining the economics, history, and politics behind today’s dystopian headlines. As a writer, I’m interested in topics ranging from AI’s impact on labor to startups nobody asked for. My prior work includes bylines in Jacobin, Verso, and Blue Labyrinths. My work for Futurism has been cited by publications including Forbes, The Guardian, MIT Technology Review, Time, The Nation, Mother Jones, The Verge, and Wired. I grew up in Michigan, attending Central Michigan University as well as Ball State University, where I earned a master of music. I now live in Brooklyn with my girlfriend and our cat Ziti. On weekends, you can find me hunched over a cold pint arguing geopolitics with the other transplants. ### Author social links [Bluesky]() ## More - [New Democratic Congressional Majority Preparing Barrage of AI Legislation]() - [Senator Who Tried to Ban Prediction Markets Gets Hired by Kalshi as a Lobbyist]() - [News Organizations Like CBS Embracing Prediction Markets as “Journalism” Is a Deep Moral Disgrace]() - [Man Sues Kalshi After Losing Over $300,000 Gambling on Platform]() - [Professional Gamblers Move Into Prediction Markets to Bleed You Dry]() - [OpenAI Strikes Bold Deal With Kalshi to Mix Together the Most Hated Technologies in Existence: AI and Prediction Markets]() - [China Planning Crackdown on AI That Harms Mental Health of Users]() - [In Case You Still Think Insider Trading on Prediction Markets Isn’t Real, Trump’s Teleprompter Guy Just Got Busted for Getting Rich on Betting What He Would Say]()