TLDR Five Democratic lawmakers sent a letter to 12 CEOs of sportsbooks and prediction markets over concerns about targeting young adults aged 18-24 Kalshi was called out for a TikTok ad where a user claimed to earn two years’ rent from trading on the platform An Ipsos poll found young men aged 18-24 are twice as likely as others to use sports betting or prediction market apps The lawmakers labeled industry efforts to address concerns as “insufficient” and “reactive” and requested answers to 12 questions by May 29 The SAFE Bet Act, which would impose federal regulations on sports betting advertising and bonuses, has not received a committee hearing
Five Democratic lawmakers in Congress sent a letter on Monday to 12 CEOs of online sportsbooks and prediction markets. The letter raised concerns about how these platforms are affecting young adults in America.
The lawmakers include U.S. Reps. Valerie Foushee, Paul Tonko, Betty McCollum, Kevin Mullin, and U.S. Sen. Richard Blumenthal. They accused the platforms of using predatory advertising to reach Americans aged 18 to 24.
“We are particularly alarmed by the rapid normalization of online gambling among younger Americans and the targeting of this demographic through predatory advertising,” the letter stated.
The group singled out Kalshi, a prediction market platform, for a specific TikTok ad. In the ad, a user claimed to have earned enough money to cover two years of rent by trading on the platform.
Prediction Markets Draw Fire Alongside Sportsbooks
The lawmakers also pointed to Kalshi’s partnerships with major news outlets including CNN, CNBC, Dow Jones, and Yahoo Finance. They argued these partnerships create an environment where Gen Z is more likely to fall into a culture where “everything is gambling.”
Sports betting platforms were also targeted. The letter criticized bet365’s “Winning is Everything”