(AsiaGameHub) – Kalshi has countered a smear campaign by the group FairPredicts by establishing a new advocacy organization, Americans for Fair Markets (AFM). The company stated this group will combat what it calls the gambling industry’s falsehoods regarding prediction markets.
FairPredicts has been conducting an advertising campaign using the slogan “Kalshi Lies.” Kalshi dispatched a cease-and-desist letter to the group, which has not disclosed its financial backers, last week.
The letter alleged that FairPredicts is engaged in the “publication, dissemination, and paid promotion of false, misleading, defamatory, and commercially disparaging statements.”
Kalshi Launches Americans for Fair Markets
One day after issuing the cease-and-desist letter, Kalshi revealed the formation of AFM.
“We will not be outspent or outmaneuvered by entrenched interests guarding their monopolies. Millions of Americans have demonstrated they desire regulated, transparent, and fair prediction markets, and we will ensure they can access them,” said John Bivona, Head of Government Relations at Kalshi, who will act as a board member for the new entity.
In its announcement, Kalshi pointed to “false information about prediction markets” propagated by FairPredicts as a motivation for creating AFM.
It stated the “new organization will confront the sportsbook and casino interests that are intent on preserving their monopolies and planting misinformation about prediction markets with policymakers. It will also initiate campaigns to advance legislation that supports innovation, integrity, and consumer protection.”
Trump Ties To Prediction Markets Under Scrutiny
Taylor Budowich will be the group’s strategic advisor. Budowich maintains close connections to former President Donald Trump, having served as his deputy chief of staff last year.
He also collaborated with Donald Trump Jr. on the Save the U.S. Senate PAC. Trump Jr. likewise serves as a strategic advisor for Kalshi and its competitor, Polymarket.
Trump Media has also entered a partnership with Crypto.com. The New York Times reported last week that the Commodity Futures Trading Commission (CFTC) has taken steps to shield companies linked to Trump, including reassigning staff who sought to probe their operations.
White House spokesman Davis Ingle dismissed any allegations of impropriety. “President Trump acts solely in the best interests of the American people,” Ingle informed the Times. “No conflicts of interest exist.”
The CFTC has been a vigorous defender of Kalshi and similar prediction market platforms. Last week, it initiated legal action against Minnesota officials following the state’s enactment of a ban on various prediction markets.
Lobbying Ramps Up Along With Legal Battles
The activities of the FairPredicts and AFM groups appear poised to escalate an already contentious fight over the legal standing of prediction markets.
Kalshi asserts it suspects casino lobbying organizations are bankrolling FairPredicts. Both the prediction market and casino sectors are pouring significant resources into political lobbying.
Kalshi expended more than $1 million on lobbying activities last year. Only two gambling entities, the American Gaming Association (AGA) and the Gila River Indian Community, spent a greater amount.
According to the company, AFM comprises Kalshi and “a coalition of the industry’s most significant stakeholders.” Kalshi previously founded the Coalition for Prediction Markets in partnership with Crypto.com, Underdog, Coinbase, and Robinhood last year.
That coalition also declared its mission was to safeguard the legal status of prediction markets from casino-supported initiatives aimed at curtailing the industry.
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