Kalshi, Polymarket face scrutiny from Democrats after midterms

Prediction markets called the 2026 midterms correctly, and the party that won may now try to rein them in Prediction markets spent election night looking very smart. Now they may have to explain themselves to the people they just predicted would win. Democrats plan to crack down on platforms like Kalshi and Polymarket after strong gains in the 2026 US midterm elections. The companies called the outcome correctly. Their reward could be a lot more time in congressional hearing rooms. Leading Democrats, including Sen. Jeff Merkley and Rep. Maxine Waters, have publicly criticized the platforms for letting people bet on sensitive subjects such as elections, war, and terrorism. As of November 2026, both lawmakers are preparing legislative action aimed at prediction markets. The forecast that came true, and the backlash it fed On Election Day, Kalshi priced the odds of a Democratic House majority at between 93% and 94.5%. It put a Democratic Senate majority at between 73.5% and 76%. Both outcomes landed. Democrats took the House and the Senate, just as the markets suggested they would. The race-by-race record was even sharper. According to Kalshi data, the market favorite won 479 of the f...