Breaking through partisan gridlock, Congress has introduced sweeping legislation targeting prediction markets like Kalshi and Polymarket. The bipartisan bill aims to create a clear distinction between regulated sports betting and these emerging platforms that operate in a regulatory gray area.

Traditional sports betting giants FanDuel and DraftKings will dodge the regulatory bullet thanks to their state-by-state licensing model. While the bill threatens to reshape the prediction market landscape, established sportsbooks continue their expansion across state lines. The legislation marks a significant move by lawmakers to control the rapidly evolving betting ecosystem.