Online prediction marketplace Kalshi recently made headlines by contributing $39,200 to gubernatorial candidate Xavier Becerra’s campaign last Friday, just days before the California primary election.
This contribution, Kalshi’s second-largest to a state candidate, comes as the company’s marketplace gives Becerra a 74% chance of winning the governorship in November, according to a report by CalMatters.
The timing of the donation has raised questions about potential conflicts of interest, as Kalshi’s customers are actively betting on the same election outcomes. Trent Lange, executive director of the California Clean Money Campaign, expressed concerns, stating, “It does seem especially problematic when a betting market is giving large contributions to any candidate that they are holding betting markets for.”
Kalshi, founded in 2018, has significantly increased its political spending in California, contributing $115,000 to state candidates and $100,000 to the state Democratic Party since mid-2025. The company also spent $72,000 on lobbying efforts, including a bill to investigate prediction market payouts of $5,000 or more if they involve national security issues, as reported by Palo Alto Online.
Despite the controversy, Jonathan Underland, a spokesperson for the Becerra campaign, emphasized widespread support for Becerra, saying, “Californians from every walk of life are lining up to support Xavier Becerra.” Kalshi has not commented on the potential conflict of interest or the contribution.
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