Some of the largest prediction market companies in the United States have allied to form a new coalition aimed at safeguarding the sector’s interests in the face of ongoing opposition to event contracts. Named the **Coalition for Prediction Markets**, this group will enable the industry to contest claims it considers incorrect.
### The Coalition for Prediction Markets Will Champion Transparency
**Tarek Mansour**, founder of the prediction markets leader Kalshi, announced that his platform has partnered with Crypto.com, Robinhood, Coinbase, and Underdog to establish the Coalition for Prediction Markets. This initiative aims to give the prediction markets sector a voice.
Mansour stated the coalition will work to uphold the sector’s transparency and advocate for enhanced customer protection standards, countering a wave of criticism from media, regulators, and traditional gaming lobbyists. He anticipates more prediction market companies will join the new organization in the coming months.
A key mission of the coalition is to correct misconceptions about the event contracts sector and emphasize its benefits and its ability to “harness the wisdom of crowds.”
### The Launch Comes Amid an Increased Flow of Misinformation, Mansour Says
Mansour explained that the current period of misinformation spread by opponents of the prediction markets sector makes it an opportune moment to launch the coalition. He mentioned that banking lobbyists have criticized prediction markets as unsafe and protective of monopolies.
Simultaneously, prediction markets have experienced opposition from the traditional gaming industry, with regulators and stakeholders dismissing the sector as unregulated gambling.
Unlike traditional gaming operators, prediction markets are regulated by the CTFC and can operate in all states. Critics, however, argue this model is unfair and have cited statistics showing many customers view prediction markets as gambling.
Given this discourse, the new coalition plans to collaborate with policymakers to educate the public on how prediction markets function and how they differ from casinos and sportsbooks, according to Mansour. He added that key distinctions include the absence of a “house,” no penalty for winning, and trading in a “transparent and competitive environment.”
> Prediction markets deserve the same rigor as any modern financial market – clear rules and federal oversight. The best way to protect consumers is to keep these markets federally regulated, with consistent guardrails.
**Tarek Mansour, co-founder & CEO, Kalshi**
Meanwhile, Kalshi recently secured temporary relief in a betting dispute in Connecticut.
- SCCG Management. The Gambling Industry’s Global Connector. Access Here.
- Source: SCCGManagement.com