Kalshi has responded to a smear campaign run by the group FairPredicts by launching a new advocacy group, Americans for Fair Markets (AFM). The company said the group will defend against the gaming industry’s lies about prediction markets.
FairPredicts has been running an ad campaign with the tagline “Kalshi Lies“. Kalshi sent the group, which has not revealed its source of funding, a cease-and-desist letter last week.
The letter stated that FairPredicts is involved in the “publication, dissemination, and paid promotion of false, misleading, defamatory, and commercially disparaging statements”.
Kalshi Launches Americans for Fair Markets
A day after sending the cease-and-desist letter, Kalshi announced the launch of AFM.
“We’re not going to be outspent or out-organized by entrenched interests protecting their monopolies. Millions of Americans have shown they want regulated, open, and fair prediction markets — and we’re going to make sure they have access to them,” said John Bivona, Head of Government Relations at Kalshi, who will serve as a board member for the new group.
In the press release, Kalshi cited “false information about prediction markets” spread by FairPredicts as a reason for launching AFM.
It said that the “new organization will take on the sportsbook and casino interests that are focused on protecting their monopolies and seeding lies about prediction markets to policymakers. It will also run campaigns to promote pro-innovation, pro-integrity, and pro-consumer protection legislation.”
Trump Ties To Prediction Markets Under Scrutiny
Taylor Budowich will serve as the group’s strategic advisor. Budowich has close ties with President Donald Trump, serving as his deputy chief of staff last year.
He also worked with Donald Trump Jr. on the Save the U.S. Senate PAC. Trump Jr. is also a strategic advisor for Kalshi and rival platform Polymarket.
Trump Media has also partnered with Crypto.com. The New York Times claimed last week that the Commodity Futures Trading Commission (CFTC) has moved to protect companies with ties to Trump, removing staff who wanted to investigate their activities.
White House spokesman Davis Ingle rejected any suggestion of wrongdoing. “President Trump only acts in the best interests of the American public,” Ingle told the Times. “There are no conflicts of interest.”
The CFTC has aggressively defended Kalshi and other prediction market platforms. Last week, it filed a lawsuit against Minnesota authorities after the state passed a ban on a range of prediction markets.
Lobbying Ramps Up Along With Legal Battles
The FairPredicts and AFM groups look set to further intensify an already heated battle over the legal status of prediction markets.
Kalshi says it believes casino lobby groups are funding FairPredicts. Both prediction markets and casinos are investing heavily in political lobbying.
Kalshi spent over $1 million on lobbying efforts last year. Only two gambling groups, the American Gaming Association (AGA) and the Gila River Indian Community, spent more.
In addition to Kalshi, the company said AFM includes “a coalition of the industry’s largest stakeholders.” Kalshi launched the Coalition for Prediction Markets along with Crypto.com, Underdog, Coinbase, and Robinhood last year.
That group similarly said it was focused on defending the legal status of prediction markets against casino-backed efforts to restrict the industry.
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