Polymarket and Kalshi are violating laws in all 50 states, says Chris Christie
Speakers
Chris Christie — Former New Jersey Governor
— Chopping Block co-host
Andrew Ross Sorkin — Host
— CNBC Squawk Box host
Summary
- Chris Christie, representing the American Gaming Association, asserts that prediction markets like Polymarket and Kalshi are operating illegally in all 50 states by bypassing state gaming commissions.
- He argues these platforms are effectively sports betting operations (citing "over/under on strikeouts") masquerading as financial derivatives to avoid state taxes and age verification laws (marketing to teenagers).
- Christie predicts a wave of lawsuits from state governors against the CFTC and these platforms to protect state sovereignty and tax revenue, aiming to force them into the same regulatory framework as DraftKings and FanDuel.
Trade Ideas
"What's going on with [Kalshi] and Polymarket now is they're violating laws in all 50 states... They're marketing to teenagers." The "derivative" loophole is under direct attack. Christie forecasts that states will sue to force these platforms to register as gambling entities. This would impose massive compliance costs, taxes, and age restrictions, destroying their current competitive advantage and potentially shutting them down in many jurisdictions. AVOID the prediction market theme as legal headwinds intensify. A Trump administration (with advisors linked to these firms) might protect them via federal deregulation.
"DraftKings would like to do that, FanDuel would like to do that, BetMGM would like to do that, but they're following the law. These guys [Polymarket/Kalshi] are breaking the law." Christie represents the political muscle of the incumbent gaming industry. His explicit warning that states will file lawsuits ("It's coming") signals a coordinated effort to shut down or handicap unregulated competitors. If successful, this preserves the regulatory moat and market share of the compliant public giants (DraftKings, Flutter, MGM). LONG the regulated incumbents as their lobby moves to crush regulatory arbitrage competitors. The CFTC successfully preempts state laws, allowing prediction markets to operate with lower overhead than traditional sportsbooks.
Up Next
This CNBC video, published February 20, 2026, features Chris Christie discussing POLYMARKET, DKNG, FLUT, MGM. 2 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Chris Christie · Tickers: POLYMARKET, DKNG, FLUT, MGM