Prediction market platforms including Kalshi and Polymarket face the prospect of stricter regulation following Democrats' midterm election victory, according to Politico. During Trump's tenure, regulators maintained a relatively lenient stance toward prediction markets, enabling rapid expansion across politics, sports, and stock-based betting. Multiple Democratic lawmakers, including Oregon Senator Jeff Merkley, have criticized these platforms for facilitating wagers on sensitive events such as elections, wars, and assassinations. The lawmakers are now calling for stronger legislative restrictions on the industry.