Gobbledygook in support of online sports betting crosses party lines.
U.S. Congressman Don Davis, a Democrat from North Carolina, penned written testimony backing so-called “prediction markets” — a form of stock-market-style sports betting.
He said the product isn’t gambling, which is a disastrous misrepresentation that could harm his constituents through addiction and financial losses.
Rep. Davis Denies ‘Gambling’
While U.S.-facing prediction markets facilitate bets on countless current events, including politics and pop culture, the vast majority of the volume comes from sports. That may change in the future. For now, these sportsbooks dress themselves up as financial “trading” platforms.
“Prediction markets are regulated financial markets, not gambling enterprises,” Davis said in the letter on behalf of a nascent lobbying group called the Coalition for Prediction Markets. Its members include Coinbase, Crypto.com, Kalshi, Robinhood, and Underdog.
“Unlike casinos, sportsbooks, or other wagering industries, prediction markets are governed by the [Commodity Exchange Act] and its implementing regulations, not state gaming laws,” Davis claimed to the House Agriculture Committee ahead of a Dec. 11 hearing.
Numerous states say otherwise. They claim that prediction markets are illegal sports gambling. States are fighting in federal and state courts to block these controversial gambling sites.
States argue that prediction markets lack safeguards to combat compulsive product use.
North Carolina Part of Court Challenge
The Congressman’s support for prediction markets is awkward considering his state’s position on the platforms.
North Carolina signed onto the multi-state attorneys-general amicus brief in KalshiEX LLC v. Flaherty (3rd Cir., No. 25-1922) — the New Jersey appeal about whether states can regulate Kalshi’s so-called “sports event contracts.”
The brief was filed June 17, 2025.
North Carolina legalized traditional online sports betting when Gov. Roy Cooper signed a bill into law in 2023.
Rep. Davis Supports Trump-Backed Sector
Unless you’ve been living under a rock, you know there is animosity between the two political parties on Capitol Hill. Democrats have often said that the second Trump administration is the most corrupt White House in modern U.S. history.
Prediction markets are among the sectors in which the Trump family has significant financial investments. Ironically, Davis is shilling for the industry that arguably would not be flourishing without the administration.
Some critics of prediction markets say the Trump administration has enabled the Commodity Futures Trading Commission (CFTC) to be derelict in its duties to regulate the platforms. The agency was not fully staffed in 2025 and operated with fewer commissioners than required.
In addition to states, critics include other members of Congress, the NCAA, the NFL, and the American Gaming Association.
Davis isn’t the only Democrat to support the Trump-backed sector. Former Democratic Sen. Blanche Lincoln of Arkansas is registered to work for Kalshi as a lobbyist.
Sports Integrity vs. Addiction
Rep. Davis’s two-page written testimony was a word salad that focused on threats of market manipulation (i.e., the corruption of sports games and contests due to gambling).
What he didn’t mention were the financial risks associated with gambling on sports.
Surveys show that half of online bettors experience issues with their play. Academic research has linked sports betting to population-level financial harm.
There is no fundamental difference in the user experience of gambling between a prediction market and a traditional sportsbook app. The differences are superficial.
Politicians bought by the prediction market sector will contribute to harming Americans.
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