Congressman Abe Hamadeh has raised questions about the recently announced partnership between prediction market operator Kalshi and broadcaster CNN.
Key Takeaways
- Congressman Abe Hamadeh has shared his concerns with Kalshi’s partnership with CNN in a new letter addressed to CFTC acting chair Caroline D. Pham.
- Congressman Hamadeh cites threats to market integrity and calls the partnership “outright dangerous.”
- Kalshi announced its partnership with CNN on Dec. 2.
The congressman cited concerns about market integrity and national security in a letter sent to the acting Chair of the Commodity Futures Trading Commission (CFTC). In a statement, he said that his constituents had raised alarms about a major media company joining with a firm that offers trading on real-world events.
According to Congressman Hamadeh, CNN would be positioned to influence public perceptions of events that could be listed as tradable contracts on Kalshi, including elections, wars, and foreign policy events.
The congressman also argued that the partnership created a conflict of interest and could expose markets to manipulation by domestic or foreign actors.
Asking the CFTC to outline its response within 30 days, Congressman Hamadeh referenced the Commodity Exchange Act, which requires the Commission to ban contracts that involve war, gaming, or that are against the public interest.
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CNBC announces partnership with Kalshi
The growing scrutiny follows another media agreement involving Kalshi, this time with broadcaster CNBC, which revealed that it had signed a multi-year, exclusive partnership to add Kalshi’s prediction market data to its platforms starting in 2026.
CNBC says it plans to display real-time prediction data during programs such as Squawk Box and Fast Money, as well as an on-air ticker and a CNBC page on Kalshi’s website.
The partnership would dramatically expand the visibility of prediction market data within financial news coverage, including forecasts tied to economic, political, and financial events, and is bound to raise further questions among lawmakers over market integrity and news impartiality.
Nevada court ruling threatens Kalshi sports contracts
The deals with CNN and CNBC are particularly remarkable as Kalshi is facing severe legal pressure in multiple states. Its latest setback came in Nevada after a federal judge denied its request for a stay to delay enforcement of a cease-and-desist order issued by regulators against its sports contracts.
In the ruling, District Judge Andrew Gordon ruled that Kalshi had not met the requirements for a stay while it appeals the case to the Ninth Circuit Court of Appeals.
The decision follows Gordon’s earlier order dissolving an injunction that had temporarily blocked Nevada from enforcing the cease-and-desist. Without a stay, Kalshi will have to seek emergency relief from the appeals court to continue offering sports-related contracts in the state.
As with many of the other cases involving Kalshi, this one centers on whether their sports contracts are considered financial instruments or sports betting markets.
In his prior ruling, Gordon concluded that Kalshi’s sports contracts were unlikely to qualify as swaps under federal commodities law, noting that swaps may reference whether an event occurs but not specific outcomes such as the winner of a sporting event.
Similar disputes involving Kalshi remain pending in other states, including appeals related to New Jersey and Maryland.
