A former influential adviser to Barack Obama and Kamala Harris has joined the Donald Trump Jr.-backed prediction market Kalshi to promote federal sports gambling.

“Excited to advise Kalshi as they continue to dominate the prediction market space,” said top Democrat political consultant Stephanie Cutter. “They’re one of the fastest growing companies in the US — and one of the rare tech platforms that take a regulatory first approach.”

She is the latest Democrat to enter the sector. Prediction markets are starting to divide the party, as numerous party leaders have slammed the platforms as unregulated and predatory online gambling.

‘Bloodthirsty Leeches’

Cutter’s work will support a controversial new form of online gambling that avoids state-level oversight.

Detroit, a Democratic stronghold, recently denounced prediction markets in a court filing as “bloodthirsty leeches.” The city warned of fiscal catastrophe due to prediction markets.

In March, Arizona filed criminal charges against Kalshi for alleged illegal gambling.

Trump Media and Technology Group plans to launch its own online sports gambling platform. Trump Jr. also has a financial stake in Polymarket, another leading prediction market.

Some observers warn that prediction markets could eventually launch a form of online casino gambling.

Democrats Rolling the Dice

Cutter joins a growing list of Democrats in a sector fueled by the current Republican administration.

Sean Patrick Maloney, a former Democratic congressman from New York, is the CEO and president of the Coalition for Prediction Markets, an industry lobbying group promoting dangerous products associated with addiction.

U.S. Congressman Don Davis, a Democrat from North Carolina, recently submitted written testimony in support of the coalition’s platforms.

In January, John Bivona, a longtime political strategist who served in the Biden administration, joined Kalshi to lead its lobbying efforts in Washington.

In 2024, Rep. Jared Moskowitz (D-Fla.) co-signed a letter to the CFTC warning that restricting event contracts could “stifle responsible and regulated innovation.”

Bottom Line

Prediction markets demonstrate how some Democrats are seeking financial and political opportunities by supporting gambling products.

Meanwhile, there is still no federal funding for gambling addiction treatment and research.

Critics say that CFTC-regulated online sports gambling has been made possible by the corruption of the Trump administration. The Democratic Party has often accused the current administration of rampant corruption in numerous sectors.

Despite this position, a small but growing list of Democrats is endorsing prediction markets. Time will tell if these nascent gambling platforms can acquire more Democrats.