Reported FTC sports betting review would exclude Kalshi and Polymarket

A reported early-stage Federal Trade Commission review of the online sports gambling industry is expected to focus on traditional sportsbooks, not prediction market platforms Kalshi and Polymarket. The FTC has not confirmed the review publicly, and DraftKings said it has not received a Civil Investigative Demand.

The reported focus is on deceptive or misleading advertising rather than on whether sports betting itself is legal. According to the source report, neither DraftKings nor FanDuel has been served with a formal request.

Reported FTC focus is on sportsbook advertising

The review is described as targeting major sportsbook operators such as DraftKings and FanDuel in an industry estimated at roughly $167 billion and serving tens of millions of users. But the matter appears to be in its early stages, with key details still unconfirmed.

That uncertainty matters for readers in New York because several of the biggest sportsbook brands active in the state are among the operators reportedly at the center of the review, even though no formal FTC demand has been disclosed.

Kalshi and Polymarket are reportedly outside the review

Kalshi and Polymarket are expected to be excluded because they argue they are financial marketplaces, not gambling operators. Kalshi CEO Tarek Mansour has said the platform is not gambling “because it is an open financial market that matches buyers and sellers.” Both companies have argued they should be regulated by the Commodity Futures Trading Commission.

That distinction remains important in New York, where the state has sued Kalshi and Polymarket this year, alleging they are operating illegally and encouraging problem gambling among users under 21. Polymarket’s suit cited research from the National Institutes of Health and the American Psychological Association linking pathological gambling to mental health disorders, suicidal behavior and substance abuse.

What to watch next

For now, the main open questions are whether the FTC has moved beyond an internal review and whether any sportsbooks will receive formal requests. Readers in New York should also watch how the state’s cases against Kalshi and Polymarket develop, since those disputes could help shape how event-contract platforms are treated alongside more traditional online betting operators.

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Source: As reported by Charlie Mullan.