Texas senators examine prediction markets amid gambling debate - KCBD

The hearing pulled in Robert DeNault, legal counsel for Kalshi, a platform that lets users buy "yes" or "no" contracts on whether something will happen in the future. DeNault told the committee Kalshi trades event contracts, sometimes called swaps, and that the company does not operate as the "house" the way a casino does. The American Gaming Association wants Texas lawmakers to force these platforms to follow the same state gambling laws that cover casinos and sportsbooks.

For folks in Lubbock, this isn't an abstract regulatory fight. Prediction markets have grown fast here, and the state's decision on gambling law will shape who can access them, how they're taxed, and whether they need a license. Kalshi's framing, if lawmakers accept it, would let these platforms keep operating outside traditional gambling rules altogether.

The committee's charge specifically ties this back to protecting Texas elections and sports, including whether people here could legally bet on election results through apps like Kalshi.

A company arguing it isn't the house is still the one taking the bets either way.