Congressional Heat on CFTC and Record Breaking Masters Volume on Kalshi Define a Volatile Week for Prediction Markets

CFTC's Mike Selig faces House heat as Kalshi sees $545M in Masters trading. Plus, Damon Jones to plead guilty in NBA insider gambling scandal.

By: AXL Media

Published: Apr 18, 2026, 10:53 AM EDT

Source: Information for this report was sourced from Gambling Insider

Partisan Tension High as CFTC Chair Faces House Agriculture Committee

CFTC Chair Mike Selig faced a rigorous session before the House Agriculture Committee on Thursday, characterized by sharp partisan divides. While Republican members focused on general regulatory oversight, Democratic representatives, led by California Rep. Jim Costa, challenged the agency on the classification of event contracts. Critics argued that many prediction markets are operating as gambling platforms under the guise of innovation. The hearing touched on sensitive topics including insider trading risks and the agency’s capacity to regulate war-related markets, leaving Selig to defend the CFTC’s "broad definitions" of commodities and swaps.

Record Breaking Trading Volume for Kalshi During The Masters

Despite the looming legislative scrutiny, prediction market Kalshi reported unprecedented engagement during The Masters golf tournament. As Rory McIlroy secured his second consecutive Green Jacket, the platform processed $545 million in total trading volume, with $460.3 million concentrated on the tournament winner market. Industry observers noted that while prediction market volume differs from traditional sportsbook handle, these figures represent the most active sporting event in the company’s history, surpassing the spread of bets seen during the 2026 Super Bowl.

Proposed Federal and State Tax Hikes Target Operators

Legislative efforts to tap into gambling revenue intensified this week with several high profile tax proposals. Rahm Emanuel, a potential 2028 presidential candidate, proposed a 10% federal tax on gambling operators and prediction markets, aiming to generate up to $50 billion annually for US innovation funds. On a state level, Ohio Senator Bill Blessing introduced a bill to implement a 2% fee on all sports wagers. These moves have raised concerns among industry advocates who argue that per-wager taxes often negatively impact consumer value and market stability.