Introduction to Online Betting Platforms
Two online platforms, Kalshi and Polymarket, are now taking bets on Maine’s 2026 elections. These platforms allow users to put money on which party will win the U.S. Senate race and who will take the crowded primaries. This has raised concerns and sparked interest in the nascent and controversial market.
How the Platforms Work
Kalshi and Polymarket operate under federal securities laws and offer “futures contracts” that give users binary choices on current events and sports. They bill themselves as peer-to-peer platforms that match bets with conflicting ones, rather than setting odds like regulated sportsbooks. For example, Kalshi gives upstart oyster farmer Graham Platner a 63% chance of winning the Senate primary over Gov. Janet Mills, who is at 36%. This percentage corresponds to a 63-cent price for a share in Platner that would pay $1 if he wins the June nominating race.
Current Betting Activity
Bets on Maine elections were available in 2024, with Kalshi users putting $1.7 million on the winner of the state in the presidential election. But their use will likely explode in 2026, with wagers already exceeding $1.1 million on the winner of the buzzy Democratic primary for the right to face U.S. Sen. Susan Collins in next year’s election.
Regulatory Concerns
States, including Maine, are wary of incursions into the sports betting market by Kalshi and Polymarket, which offer bets on sports without falling under state regulations. Earlier this month, the state’s gambling regulator issued a warning to platforms operating under sweepstakes laws that offer sports betting and casino-style games. Maine does not allow regulated sportsbooks to take bets on in-state college sporting events, but Polymarket was offering a market on the University of Maine’s Friday basketball game against American University.
Controversies and Criticisms
In 2023, a group of Democratic senators urged a federal regulator to ban Kalshi from taking contracts on elections, citing risks of insider trading. Trump’s son, Donald Trump Jr., joined Kalshi as an adviser in January. The platforms have policies against insider trading and have responded to concerns from sports leagues by saying they want robust regulations. A Kalshi official stated, “We, like them, want a safe, regulated platform that provides integrity reassurances.”
Conclusion
The rise of online betting platforms like Kalshi and Polymarket has sparked interest and concern in the sports betting and political communities. As these platforms continue to grow and expand, it is likely that regulatory concerns and controversies will continue to arise. It remains to be seen how these platforms will be regulated and how they will impact the sports betting and political landscapes. One thing is certain, however: the use of these platforms will continue to grow and evolve, and it will be important to monitor their development and impact.
