‘Canary in the coal mine’: States threaten crackdown on election betting
Canary in the coal mine': States threaten crackdown on election betting
Tyunews.com – States such as Maryland, Texas, and Arizona are intensifying efforts to regulate election betting, with officials warning of potential legal actions against individuals wagering on political outcomes. In Maryland, bettors can place wagers on a variety of electoral events, including the gubernatorial race and congressional district contests. However, the state has enacted a ban on such betting, and its election administrator, Jared DeMaranis, is prepared to enforce the rule.
"If we have credible information about illegalities and it's not within our civil citation authorities, we will of course refer those matters to the office of the state prosecutor for enforcement," DeMaranis told ABC News. "This is going to be a growing issue and something that we need to stop in its infancy."
While prediction markets like Kalshi and Polymarket have become popular for tracking election trends, federal regulators and courts have previously supported the practice, allowing Americans to wager on political results. Yet, over half of U.S. states maintain laws that restrict or prohibit election betting. In Wisconsin, for example, voters are barred from casting ballots in races where they’ve placed wagers, according to state statutes.
Ann Jacobs, chair of the Wisconsin Election Commission, acknowledged the challenge of enforcing such rules but defended their intent. "The policy behind saying, 'You can bet or you can vote, but you can't do both,' is 100% a sound policy," Jacobs said. "We want people to vote based on their belief that the person they are voting for is going to be the best for their community ... it just makes sense."
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Azariah officials have targeted prediction market platforms directly, with the state attorney general filing criminal charges against Kalshi this year. The claim: the platform operated an unlicensed gambling business and accepted wagers from residents. In April, a federal judge halted Arizona’s case, citing a lawsuit from the Commodity Futures Trading Commission, which argued that prediction markets fall under federal jurisdiction.
Meanwhile, Texas, another state with a ban on election betting, has not yet commented on its approach. Christopher McGinn, executive director of the Texas Association of County Election Officials, noted that administrators are exploring ways to address potential manipulation or misinformation linked to financial incentives in betting.
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Recent events in prediction markets have also drawn attention to the role of event contracts in political forecasting. Advocates argue that these platforms provide more accurate insights than traditional polls, while critics caution about risks to electoral integrity. A notable case involved Kalshi suspending three congressional candidates for wagering on their own races.
Amid these developments, other states continue to weigh their options. As the 2026 New York primary elections saw voters casting ballots at various locations, including an armory and YMCA in Brooklyn, the debate over betting’s influence on democracy remains active.