Why you won't find Kentucky Derby bets on prediction platforms
Horse racing betting operates under strict regulations requiring permission from race tracks, horsemen's groups, and state commissions, limiting the involvement of prediction market platforms. Companies like Kalshi and Polymarket do not offer horse racing bets, citing regulatory and industry resistance, while traditional betting on events like the Kentucky Derby remains strong. The legal tension continues over whether prediction markets constitute gambling or trading, with the CFTC challenging state efforts to regulate them.
- ▪Betting on horse races requires permission from race tracks, horsemen's groups, and state racing commissions under the Interstate Horseracing Act of 1978.
- ▪Kalshi and Polymarket do not offer horse racing bets, and neither company commented on their absence.
- ▪Kentucky has proposed banning its licensees from offering predictions and imposing a 17.5% tax on prediction market fees.
- ▪The CFTC regulates prediction platforms and has sued states attempting to block them, arguing they offer trading, not gambling.
- ▪Traditional betting on the Kentucky Derby is increasing, with Churchill Downs and Caesars reporting higher wagers than expected.
Opening excerpt (first ~120 words) tap to expand
Horse racing has long been something of its own little fiefdom. Betting on the races, America's original form of sports betting dating back to the colonial era, enjoyed special status even before the Supreme Court in 2018 struck down a law that prevented states other than Nevada from offering sports betting. By law, under the Interstate Horseracing Act of 1978, offering wagers on horses requires explicit permission from the host race track, the horsemen's group made up of owners and trainers and the state racing commission where the race is held. That's left the burgeoning prediction markets industry on the outs.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at CNBC — Business.
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