Prediction Market Kalshi Strengthens Ties With Democratic Strategists Ahead of Congress Shift

Prediction market Kalshi has brought on political strategist Eric Schultz, a former top adviser and deputy White House press secretary to former President Barack Obama. The appointment is part of a broader corporate push as firms anticipate Democratic victories in upcoming midterm elections and prepare for potential shifts in the makeup of Congress.

Schultz joins a growing roster of Democratic operatives brought on by Kalshi this year. The company previously hired another Obama aide, Stephanie Cutter, alongside former Biden administration official John Bivona. Kalshi declined to comment on the arrangement, and Schultz did not respond to requests for comment regarding whether his role will be in-house or external through his independent consulting firm.

The strategic staffing comes as Kalshi users assign high probabilities to shifts in legislative control, projecting a 91 percent chance that Democrats secure a House majority and a 65 percent chance of a Senate majority. Even with the election outcomes yet to be decided, prediction markets face the prospect of increased scrutiny in the upcoming congressional term, as lawmakers from both major parties voice skepticism regarding the regulatory stance adopted by the current administration.

Broader corporate shifts mirror Kalshi’s strategy, with businesses in related sectors adjusting their political representation and occasionally parting ways with Republican personnel ahead of 2027. Meta recently saw the departure of veteran GOP adviser Joel Kaplan as its global policy chief, while OpenAI brought on Jessica Schumer—daughter of the Senate Democratic leader—to concentrate on the Northeast region.

Kalshi has also reinforced its legal and advocacy arms with prominent political figures. Neal Katyal, the attorney who argued against President Donald Trump’s tariffs before the Supreme Court, is representing the prediction market in ongoing litigation against states and tribal entities. Furthermore, the Kalshi-backed Coalition for Prediction Markets is represented by former Biden administration solicitor general Elizabeth Prelogar and led by former New York Democratic Representative Sean Patrick Maloney.

These new additions could face active political engagement next year if Democrats initiate inquiries into the Trump administration’s connections to prediction markets. Maloney, a two-time impeachment voter against Trump, previously called for testimony from Kalshi and Polymarket investor Donald Trump Jr. before congressional panels.