Kalshi intensifies US lobbying efforts with Washington, DC, office
Prediction market Kalshi has opened a new office in Washington, DC, as part of a broader effort to shape how regulators and lawmakers oversee the prediction market industry.
The platform said the office will serve as its hub for federal and state government engagement, a signal of its intent to deepen policy influence amid growing legal and political scrutiny across the US, according to The Block.
To go along with their new office, Kalshi has appointed veteran political strategist John Bivona as its first head of federal government relations.
Bivona’s experience includes nearly two decades in politics, including at the Department of Homeland Security under the Biden administration. His most recent role was with Kalshi’s outside lobbying firm, Intersection Government Relations.
Kalshi’s DC move comes as prediction markets are surging in popularity and volume. However, with that surge has come a similar rise in controversy, as prediction market platforms like Kalshi are currently in legal disputes with state-run gambling regulatory bodies across the country.
States argue that the sports contracts offered on these platforms amount to illegal sports gambling, while Kalshi and other operators argue they fall under federal oversight and that states should not be able to intervene.
Judges in Nevada and Massachusetts have sided with state regulators, saying that sports event contracts fall under state gaming rules. Elsewhere in Tennessee, a judge recently sided with Kalshi, giving them a temporary reprieve to keep operating in the state as the case plays out.
By establishing a DC presence, Kalshi aims to build direct relationships with key policymakers at a critical moment for the industry.
Charlotte Capewell brings her passion for storytelling and expertise in writing, researching, and the gambling industry to every article she writes. Her specialties include the US gambling industry, regulator legislation, igaming, and more.
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The Backstory
Why Kalshi is doubling down in Washington
Kalshi’s move to open a Washington, D.C., office and elevate federal outreach comes after a year of legal wins, state pushback and rapid commercialization that reshaped the prediction markets debate. The company is betting that a closer hand on federal policy will determine whether its model scales nationally or remains fenced off by state gambling rules. Its pitch is simple: event contracts are federally regulated derivatives, not sports bets, and should sit with the Commodity Futures Trading Commission, not state gaming boards. That framing gained momentum in federal court but continues to collide with state-level crackdowns. The new D.C. presence signals that Kalshi is preparing to fight on both fronts while driving industry standard-setting before the 2026 election cycle and major sports seasons raise the stakes.
A turning point in federal oversight
The pivotal shift came when the CFTC opted to stand down in its legal fight over election markets. In CFTC drops Kalshi election betting appeal, the regulator voluntarily dismissed an appeal after a federal judge in Washington allowed Kalshi to list election contracts. The decision did not rewrite all the rules, but it curtailed the agency’s immediate effort to block political event contracts and, in effect, put more weight on how courts interpret the CFTC’s remit in this space. Advocacy groups warned of broader risks, yet the market takeaway was clear: federal resistance had eased, at least for now. That outcome emboldened platforms to expand product lines and investor pitches, and it put new pressure on states to draw their own red lines. For Kalshi, it reinforced the logic of investing in permanent federal engagement, where definitions of “public interest” and “election wagering” are being tested in real time.
Statehouse resistance and courtroom strategies
Even as federal headwinds have softened, state regulators are escalating enforcement. Maryland offers a clean snapshot of the fault line. In Prediction markets platform Kalshi files lawsuit in Maryland, the company sued the Maryland Lottery and Gaming Control Commission after a cease-and-desist order, seeking a preliminary injunction and arguing that Maryland’s actions are preempted by federal law. Kalshi’s core claim is that its sports event contracts are peer-to-peer swaps supervised by the CFTC, not state-governed wagers. The complaint asks the court to declare the federal framework controlling and block state intervention. Maryland is not alone. States from Nevada to New Jersey have taken steps to curb or halt operations, saying these products look and function like wagers and should meet the same consumer safeguards and tax obligations as sportsbooks. Kalshi counters that state-by-state licensing makes little sense for a derivatives venue already under federal oversight.
Nevada is the marquee test case. As detailed in Judge commits to move quickly on Kalshi Nevada judgment, a federal judge is racing toward a decision after the Nevada Gaming Control Board told Kalshi to stop. The board and the Nevada Resort Association argue the platform is offering unregulated sports betting, lacks adequate responsible gambling controls and cannot lawfully touch election outcomes. Kalshi says CFTC rules preempt state oversight and allow nationwide access, even in jurisdictions without legal sportsbooks. Early injunctions have paused some state orders while courts sort jurisdiction and consumer protection questions. A swift Nevada ruling could set a practical template for other states, either reinforcing federal primacy or validating the view that sports event contracts are wagers subject to local licensing.
Brand deals raise visibility—and scrutiny
As the legal map shifts, Kalshi is also pushing into mainstream sports. The National Hockey League struck multi-year arrangements with both Kalshi and rival Polymarket. In NHL signs multi-year deals with Kalshi and Polymarket, the league granted access to data and branding for use on event markets and in broadcasts across regular-season and marquee events. For Kalshi, the partnership legitimizes sports contracts in the eyes of fans and advertisers, and it could accelerate user growth. It also escalates tensions with traditional bookmakers and state regulators. The American Gaming Association criticized the NHL’s move as undermining state consumer protections, and Nevada reminded licensees that sports event contracts are treated like wagers inside the state’s borders. The clash underscores a broader question: can federally supervised event markets coexist with a state-by-state sports betting regime without eroding standards on responsible gambling, taxation and enforcement? The NHL deals increase pressure for a coherent policy answer as fan engagement and sponsor dollars ramp up.
Capital, leadership and the IPO question
Kalshi is staffing and capitalizing for scale while the regulatory fight unfolds. The company named Saurabh Tejwani its first finance chief, tapping an executive who helped steer Uber’s initial public offering and other expansion programs. In Kalshi appoints former Uber executive as first Chief Financial Officer, Tejwani framed his role around dealmaking, international expansion and strategic finance, with an IPO as a future consideration rather than an immediate target. Kalshi raised more than $300 million in October and lifted its valuation to $5 billion, according to the report, positioning it to invest in compliance, product and market development even as rivals advance. Polymarket, cited at an $8 billion valuation, plans a deeper U.S. push following regulatory approvals, adding competitive pressure on liquidity and brand recognition. That backdrop helps explain Kalshi’s dual-track strategy: shore up federal credibility and visibility in D.C. while striking headline partnerships and scaling operations to meet surging demand.
What’s at stake in the next phase
The next stretch will hinge on whether courts cement a clear lane for federally regulated event contracts and where states can still assert control. A favorable Nevada ruling would bolster Kalshi’s preemption arguments and support broader access, but an adverse decision could force a retreat into a patchwork of compliant jurisdictions. The Maryland case could clarify how far states can go when federal agencies have approved or tolerated specific products. Meanwhile, federal politics may intervene again if election-related markets trigger new rulemakings or congressional scrutiny. Kalshi’s D.C. buildout, led by a seasoned government relations hire, is designed to influence that process and manage risk before policy hardens. Commercially, league partnerships and prime-time integrations will test whether mainstream exposure converts into sustained liquidity without triggering a backlash that invites tougher rules. With capital in hand and leadership in place, Kalshi is betting that speed, policy fluency and institutional branding can turn recent legal momentum into a durable market position—even as opponents press the case that a federal derivatives construct should not supplant state gambling laws.
