Trading on prediction markets for U.S. elections is growing fast.

This is happening before the 2026 midterms.

At the same time, some states want to ban these platforms.

They say the platforms are gambling without a license.

Election officials worry about this.

They think heavy betting could hurt public trust in democracy.

Jared DeMarinis is Maryland's election administrator.

He called this "a troubling trend."

He said officials across the country must deal with it.

Platforms like Polymarket and Kalshi let people buy and sell contracts.

These contracts cost between 1 and 99 cents.

People use them for races from mayor to U.S. Senate.

Company officials say this is not gambling.

They say it is like trading stocks.

People use it to protect against election results.

They also say federal law requires rules against insider trading.

They point to research that shows their odds are close to real results.

But the markets have had problems this year.

They favored a losing candidate in Wisconsin's governor primary.

In Los Angeles, influencers used market odds.

They falsely said officials were cheating.

Courts are now deciding if states can ban these markets.

States say the markets are gambling.

But court rulings will probably not come before the election.

Billions of dollars may trade on questions.

One question is which party will control Congress.

Officials are preparing public education campaigns.

They want to tell people that market odds are not polls.

They are also not vote counts.

Some counties are adding prediction-market betting to worker oaths.

Analysts also give a warning.

Rich partisans could raise odds to change voters' minds.

They could also help candidates get money.

But platform officials say traders who want money fix any cheating quickly.