Kalshi Doubles Down on Washington Influence: New Office Signals Aggressive US Lobbying Push

Kalshi plants its flag in the nation's capital—and the timing couldn't be more strategic. The prediction market platform is moving its political chess pieces, opening a Washington, D.C. office to turbocharge its lobbying firepower. This isn't just a real estate play; it's a direct bid to shape the rules of the game.

The Beltway Gambit

Forget back-channel whispers. Kalshi is going institutional. A physical presence inside the Beltway means more face time with regulators, more coffees with congressional staffers, and a permanent seat at the policy table. The goal? To frame the narrative around event contracts and prediction markets before the opposition does. It's a classic Washington maneuver: if you can't beat the system, embed yourself in it.

Lobbying on Overdrive

The new office isn't a satellite—it's a command center. Expect a ramp-up in hired guns, from former CFTC officials to ex-congressional aides who know how to draft favorable legislative language. The lobbying spend is about to get a serious boost, targeting key committees that oversee everything from financial innovation to gambling regulations. They're not just asking for permission; they're drafting the blueprint for it.

Why This Matters Now

The regulatory climate for novel financial instruments is at a crossroads. With election-year politics heating up and scrutiny on 'gamified' finance intensifying, Kalshi needs allies. A D.C. foothold allows for rapid response to proposed bills and a chance to educate—or sway—policymakers directly. It’s a defensive play wrapped in an offensive strategy.

The finance world’s usual playbook—move fast, break things, apologize later—doesn’t fly on Capitol Hill. Kalshi’s D.C. office is a tacit admission that sometimes, you have to play the long, expensive, and painfully bureaucratic game. After all, what’s a few million in lobbying fees compared to a billion-dollar market cap? Just another cost of doing business in an industry where the real commodity is often regulatory ambiguity itself.

Kalshi Steps Up Policy Engagement as Prediction Markets Gain Traction

Kalshi said the MOVE reflects its intention to engage more directly with policymakers as prediction markets gain traction.

The platform, which is regulated by the Commodity Futures Trading Commission, allows users to trade contracts tied to the outcome of future events, ranging from elections and economic data to entertainment and sports.

To strengthen its state-level outreach, Kalshi has also hired Blake Bee, a former senior manager of state and local public policy at Amazon.

Bee previously worked closely with state attorneys general and spent years at the National Association of Attorneys General, as well as in the Mississippi Attorney General’s Office.

Kalshi prepares for change in control of Congress; hires Democrat to lead DC lobbying efforts. pic.twitter.com/1qpce9v6JZ

Kalshi has emerged as the world’s largest prediction market by monthly volume.

The company reported $6.58 billion in trading volume in December, far outpacing rival Polymarket, which logged $2.28 billion over the same period. Trading activity surged last fall, coinciding with the start of the NFL season.

CEO Tarek Mansour said the platform processed roughly $441 million in volume in the first four days following kickoff.

Despite its rapid growth and federal license, Kalshi has encountered resistance from several US states over its sports-related contracts.

Regulators in states including Arizona, Tennessee, Connecticut and Massachusetts have argued that those offerings amount to unlicensed sports betting under state law.

Court rulings have been mixed. A federal judge in Nevada ruled last year that Kalshi must comply with the state’s gaming regulations, rejecting the firm’s argument that CFTC oversight overrides state authority.

Kalshi is appealing that decision. In contrast, a judge in Tennessee temporarily blocked state officials from stopping the platform’s sports contracts.

State Opposition to Prediction Markets Builds Over Consumer Concerns

State opposition to prediction markets has been building for months.

In 2025, the SWC urged the CFTC to prohibit sports event contracts, arguing that such products bypass state safeguards such as age verification, responsible gaming rules and anti-money laundering requirements.

As reported, a new legislation to limit the interactions between government officials and the prediction markets is being supported by more than 30 Democrats in the US House of Representatives, including former Speaker Nancy Pelosi.

The lure behind new restrictions is a controversial Polymarket bet, which started as a bet of $32,000 but eventually became more than $400,000 shortly before the unexpected detention of Venezuelan President Nicolás Maduro.

The bill proposed by the New York Representative Ritchie Torres is the Public Integrity in Financial Prediction Markets Act of 2026.