Major prediction markets team up to form national trade group
While gaming trade groups shuffle around leadership, major prediction markets have banded together to form a new trade group.
Five fintech and gaming companies teamed up to form the Coalition for Prediction Markets (CPM). The CPM launched with an initial membership that includes Kalshi, Crypto.com, Coinbase, Robinhood and Underdog.
“The U.S. is the biggest frontier for prediction markets, and the momentum we’re seeing makes a unified industry voice not just important, but necessary,” said CPM President Matt David. “Prediction markets are a new layer of civic infrastructure—public-good technology that gives people clearer insight and helps institutions make better decisions. They democratize financial participation by rewarding what people know, not who they know.”
Coalition for Prediction Markets wants federal oversight only
The CPM plans to advocate for the promotion and operation of prediction markets as sports event contracts face pushback from various regulators across the country. A growing list of regulators consider sports event contracts to be illicit gaming activity, with several comparing the vertical to sports betting, requiring operators to hold wagering licenses..
Prediction markets, including Kalshi and Crypto.com, are pushing back with a growing number of legal battles in district and circuit courts across the country. At the heart of the legal debate is whether or not state gaming regulators or the Commodity Futures Trading Commission (CFTC) should be able to determine the legality of sports-related event contracts.
“We spent years working with the CFTC because prediction markets must operate with strong federal safeguards that prevent insider trading, protect consumers and ensure these markets remain transparent and corruption-free,” said Kalshi Head of Corporate Development Sara Slane in a release about the coalition’s formation. “Americans deserve clarity, not 50 conflicting interpretations.”
The CPM is kicking off its launch as a trade group by advocating for the current regulatory framework for prediction markets as opposed to state-sponsored oversight of the platforms.
“As the first federally regulated prediction market, Kalshi saw firsthand how quickly this space was growing—and how urgently a unified industry voice was needed to advocate for access and consistency nationwide,” continued Slane.
Polymarket noticeably absent from list of members
The list of members includes designated contract markets (DCMs) like Crypto.com and Kalshi as well as futures commission merchant Robinhood and even tech partner Underdog, but one DCM is not a founding member of the organization.
Polymarket returned to the U.S. market earlier this month but is not part on the group.
Underdog joins the CPM amid major changes
Underdog, the only gaming-focused member of the coalition, joined the trade group as a tech partner after making company-wide operational changes. This week, Underdog informed users of its plans to exit North Carolina’s online sports betting market.
North Carolina was the only state Underdog offered online sports wagering and the fantasy sports giant plans to shutter operations in the Tar Heel State on Dec. 16.
Underdog exited North Carolina’s online sports betting as it plans to dive head first into the prediction market space. The company confirmed to SBC Americas that it plans to offer event contracts in North Carolina through an integration in its fantasy app. Underdog showcased its commitment to event contracts by submitting an application to become a member of the National Futures Association (NFA). Underdog applied to be an NFA member, swap firm and a futures commission merchant through a subsidiary, UDM Holdings LLC. Underdog submitted paperwork to the NFA in April and is awaiting approval.
https://sbcamericas.com/2025/12/11/prediction-markets-form-big-trade-group/