A bombshell report is raising alarming questions about whether President Donald Trump is quietly dismantling federal oversight of America’s exploding online betting industry — while replacing regulators with allies tied directly to the businesses under scrutiny.
And critics say watchdog staffers are being “mowed down” in the process.
According to a major investigation by The New York Times, the Trump administration has aggressively reshaped the Commodity Futures Trading Commission — the agency responsible for overseeing financial betting and prediction markets — in ways that appear designed to shield controversial platforms like Kalshi and Polymarket from regulation.
The report claims agency insiders who attempted to investigate or question the growing industry were sidelined, pushed out, or placed on leave.
Some allegedly faced consequences simply for asking questions about possible ties between prediction market companies and members of Trump’s family.
Others reportedly became targets because of prior experience regulating cryptocurrency markets.
The revelations have intensified fears that the federal government is increasingly being turned over to industry insiders with direct financial interests in weakening oversight.
At the center of the controversy is former CFTC nominee Brian Quintenz, who reportedly lost favor after clashing with crypto billionaires Cameron Winklevoss and Tyler Winklevoss.
Even that dispute, critics argue, showed how deeply crypto and betting interests are now influencing federal regulatory decisions.
Meanwhile, the Trump administration has reportedly launched an aggressive legal campaign against states attempting to regulate prediction markets themselves.
Sixteen states are currently battling betting platforms in court.
And last week, Minnesota passed a law banning prediction market companies from operating or advertising within the state.
The administration responded almost immediately with legal action.
Federal regulators under Trump are now arguing that states have no authority to regulate these markets at all — claiming only the federal government can oversee them.
Critics say that position effectively gives Washington complete control over an industry worth billions while simultaneously weakening the very agency meant to police it.
Minnesota state representative Emma Greenman defended the crackdown, warning that younger Americans are increasingly being pulled into high-risk online gambling systems.
“We’re seeing gambling starting younger and younger,” Greenman warned in comments cited by ABC News.
She said studies suggest companies are specifically targeting users between 18 and 21 years old.
That concern has become a growing national issue as prediction markets increasingly blur the line between financial trading and online gambling.
Supporters of the industry argue the platforms represent innovative financial tools and legitimate forecasting systems.
Critics say they are rapidly becoming lightly regulated digital casinos operating under Wall Street-style loopholes.
Now opponents fear Trump’s administration is clearing the path for the industry to expand even faster — while gutting the regulators who might stand in the way.
And according to critics, the message to federal watchdogs is becoming painfully clear:
Stay quiet — or get removed.