Prediction-market trading on U.S. elections is growing fast.

This is before the 2026 midterms.

States try to ban these platforms.

They say the platforms are unlicensed gambling.

Election administrators worry.

They say heavy betting can hurt public trust in democracy.

Jared DeMarinis is Maryland's election administrator.

He called it "a troubling trend."

He says officials across the country must deal with it.

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

The contracts cost between 1 and 99 cents.

People bet on 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 say federal law has insider-trading rules.

They point to research.

The research shows their odds match real results.

But the markets had problems this year.

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

In Los Angeles, influencers used market odds.

They falsely said officials cheated.

Courts now decide if states can ban these markets.

States use gambling laws.

Rulings may not come before the election.

Billions of dollars may trade.

People ask which party will control Congress.

Officials plan public education campaigns.

They will say market odds are not polls.

They are not vote counts.

Some counties add prediction-market betting to worker oaths.

Analysts warn about rich partisans.

They could raise odds to change voters' minds.

They could help candidates get money.

Platform officials say traders fix bad odds fast.