Over $13M Bet on California Governor's Race

Lawmakers propose legislation to block insider political betting as controversy swirls around prediction market platforms.

Apr. 5, 2026 at 3:25pm

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At least $13 million has been placed in bets on the California governor's race, raising concerns about the legality and ethics of allowing political betting in a state that does not permit online sports betting. The two most popular betting and prediction sites, Kalshi and Polymarket, are facing a flurry of lawsuits, with Washington filing a lawsuit against Kalshi last week and Arizona's attorney general filing criminal charges against the company last month. This week, California Senator Adam Schiff joined three other senators in proposing legislation to block insiders from betting on political races using state information.

Why it matters

The rise of political betting has sparked a debate over the potential for insider trading, manipulation, and the commodification of the democratic process. Proponents argue that prediction markets can provide valuable data, but critics worry that they could undermine the integrity of elections and give unfair advantages to those with access to inside information.

The details

Governor Newsom has banned state employees, his appointees, and their family members from making bets on these sites using state information. The controversy has also led to lawsuits against the prediction market platforms, with Washington and Arizona taking legal action. Lawmakers are now proposing federal legislation to address the issue and prevent insiders from exploiting political betting.

  • At least $13 million has been placed in bets on the California governor's race.
  • Last week, Washington filed a lawsuit against Kalshi.
  • Last month, Arizona's attorney general filed criminal charges against Kalshi.
  • This week, California Senator Adam Schiff joined three other senators in proposing legislation to block insiders from betting.

The players

Maggy Krell

Sacramento Assembly Member who spoke with reporter Ashley Zavala about what more should be done to address the political betting controversy.

Adam Schiff

California Senator who joined three other senators in proposing legislation to block insiders from betting on political races using state information.

Gavin Newsom

California Governor who banned state employees, his appointees, and their family members from making bets on prediction market platforms using state information.

Ashley Zavala

KCRA 3 Political Director and host of "California Politics 360" who reported on the political betting controversy.

Carlos Marquez III

Executive Director of the County Welfare Directors Association who was interviewed by Ashley Zavala about changes to CalFresh eligibility.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, Grocery employee

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.