New York-based prediction market firm Kalshi contributed $5,000 to Idaho Attorney General Raúl Labrador’s campaign on Tuesday. The financial support arrives as the state legal office continues a broader dispute with federal regulators over jurisdiction regarding gambling platforms.

Kalshi has distributed $15,500 in political donations to Idaho Republicans over the last month. In addition to the contribution to Labrador, the company gave $5,000 to the Idaho House Republican Caucus and $1,000 to House Speaker Mike Moyle.

Regulatory Jurisdiction Dispute

The donation occurs months after Labrador announced his intent to defend Idaho’s authority to regulate sports betting. In March, the attorney general joined a coalition of 39 states challenging the Commodity Futures Trading Commission’s assertion that it can override state gambling statutes.

Labrador argued that Congress never granted the CFTC the power to supersede state regulations, citing financial reform laws enacted fifteen years ago. The conflict intensified after federal regulatory leadership changed in late 2025, with new officials arguing states lack authority over these platforms.

Kalshi and Crypto.com began offering sports betting services in January 2025. Labrador’s office filed a brief with the Ninth Circuit Court of Appeals and submitted comments to the CFTC opposing the federal government’s position on Kalshi.

Damon Sidur, a spokesperson for Labrador, said the attorney general maintains that states, not the federal government, should set gambling policy. Sidur added that campaign contributions will not alter Labrador’s commitment to defending Idaho laws and sovereignty.

Prediction Market Activity

Kalshi allows users to wager on outcomes of various events, including entertainment metrics, NFL games, and political elections. As of Tuesday, the platform hosted 24 distinct events related to Idaho elections, generating combined trading volume exceeding $500,000.

The U.S. Senate race between Sen. Jim Risch and challenger Todd Achilles saw the highest betting activity, with a volume of $385,221. Market odds indicated a 94.3% probability of a Risch victory.

Labrador’s re-election bid attracted the second-highest trading volume at $42,896. The platform showed a 96% chance of Labrador defeating Democratic challenger Lori Hickman. Other available bets included outcomes on ballot measures, state gun policy, and whether Democratic candidate Terri Pickens would secure at least 36% of the vote.

Expert Concerns

Jonathan Krutz, a Boise State University professor emeritus who has studied gambling since the 1990s, serves as board chair for the nonprofit Stop Predatory Gambling. Krutz expressed concerns about the unregulated nature of prediction markets.

Krutz noted that these platforms allow betting on events susceptible to manipulation or insider information. He stated that such markets should be halted until proper regulations and enforcement staff are established.