Three Democratic members of Congress have asked Kalshi and Polymarket to explain their customer rewards programmes, putting the two prediction markets in the same letter round as four of the largest US sportsbooks. Senator Richard Blumenthal and Representatives Paul Tonko and Valerie Foushee sent letters on 22 October 2026 to BetMGM, Caesars, DraftKings, Fanatics, Kalshi and Polymarket, Blumenthal’s office said. They want answers by 5 November.
What the lawmakers ask
The published letter to BetMGM sets out five questions, several with sub-questions. The companies are asked how many customers are enrolled in their VIP programme, the average loss or gain of those customers in the six months before enrolment and after it, how many tried to cut back or close their accounts but were offered perks instead, and how much revenue the programme brings in. They are also asked to list every perk, including celebrity videos; to describe what they check before offering VIP status, such as past losses, self-limits or signs of problem gambling; whether VIP managers are trained to build personal relationships that encourage more gambling; and whether artificial intelligence is used to target bettors with perks. Legal Sports Report notes that all six companies got the same AI question.
Why Kalshi and Polymarket are in it
The letter names Kalshi Platinum, which it says gives VIP customers “merchandise, access to special events, and account managers”. Kalshi confirmed it was piloting the programme in January, citing brokerages and crypto exchanges such as Coinbase and Kraken as models. The letters note that the prediction markets do not call their schemes VIP programmes: Kalshi’s is Kalshi Platinum, and Polymarket has “maker” and “taker” rebate programmes, The Philadelphia Inquirer reports. The lawmakers write that prediction markets are “actively flouting safeguards established by state gambling authorities and offering their products in states where sports betting is not legal”.
Kalshi rejected the comparison. “Unlike sportsbooks and casinos, we manage our top traders by volume; we don’t take their wins and losses into account,” a spokesperson told the Inquirer, adding that Kalshi does not run targeted promotions, offers or bonuses when customers lose. No public response from Polymarket had been reported. The letters are requests for information from individual members of Congress: they carry no penalty and change no federal or state rule.
Key facts
Senders: Sen. Richard Blumenthal (D-CT), Rep. Paul Tonko (D-NY), Rep. Valerie Foushee (D-NC).
Recipients: BetMGM, Caesars, DraftKings, Fanatics, Kalshi, Polymarket.
Sent: 22 Oct 2026; answers requested by 5 Nov 2026 (14 days).
Programmes named: Kalshi Platinum; Polymarket maker and taker rebates.
Status: request for information, not an enforcement action; no responses published yet.
Why it matters for GambleFi
VIP tiers, rakeback and loyalty rewards are common at crypto casinos, and many iGaming token projects, also called GambleFi tokens, tie them to the token itself. Shuffle links SHFL to VIP bonuses and airdrops, and BC.GAME pairs cashback and VIP mechanics with incentives in its BC token. Those platforms are not US-licensed and are not addressed by the letters, but the questions now put to regulated sportsbooks and CFTC-registered exchanges, on losses before and after VIP enrolment and on AI targeting, show where scrutiny of loyalty perks is heading. It is the second pressure point on Kalshi this week after New York asked a court to enforce its subpoenas, and it lands as wallets like Phantom bring Kalshi to crypto users. Our GambleFi FAQ covers the basics. This is a news report, not legal, financial or gambling advice.