Prediction markets group bets on two connected former lawmakers
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A new coalition to protect prediction markets from state-based regulations has recruited two high-profile former members of Congress to join its team, Axios has learned.
Why it matters: By bringing in former Reps. Sean Patrick Maloney (D-N.Y.) and Patrick McHenry (R-N.C.), the Coalition for Prediction Markets (CPM) is signaling they plan to be aggressive about defending their turf.
- The group wants to ensure that federal law – and not a collection of state regulations – will continue to govern the predictions industry.
- Predictions markets have exploded in popularity in recent years, offering "event contracts" on sports, elections, random events and more.
- But critics say it's little more than unregulated betting, and that the industry blurs the line between finance and gambling.
Driving the news: The CPM, which launched in December, has recruited Maloney to serve as CEO and president.
- Maloney, a former head of the Democratic Congressional Campaign Committee who then served as President Biden's ambassador to the Organization for Economic Co-operation and Development, passed on a comeback congressional bid earlier this year.
- McHenry, who chaired the House Financial Service Committee, will come abroad as a senior adviser. Last year, the former North Carolina congressman joined Andreessen Horowitz, a Silicon Valley venture capital fund, as a senior adviser, and Lazard, an asset management firm, in the same capacity.
- Members of the PMC include Kalshi, Crypto.com Robinhood, Coinbase, and Underdog.
What they are saying: "Prediction markets are proving to be one of the most effective tools we have for aggregating information and forecasting real-world outcomes," said Maloney in a statement.
- "But that promise depends on clear rules, thoughtful oversight, and regulatory certainty."
- "Prediction markets have long operated within a federal regulatory framework designed to promote transparency and protect consumers," said McHenry in a statement. "As these markets continue to grow, it's critical that both consumers and platforms have clear and consistent guidance."
Between the lines: The gambling industry is divided over prediction markets, with casinos crying foul, while some online betting apps have embraced the trend.
