Prediction markets Kalshi and Polymarket, known for offering contracts on various events including sports, notably did not offer markets for the 2026 Kentucky Derby, a premier horse racing event with massive betting interest. Polymarket briefly listed a Derby market but removed it after Churchill Downs requested its removal, citing legal restrictions under the Interstate Horseracing Act. This law grants racetracks and regulators significant control over wagering on horse races, and without explicit consent from these authorities, prediction markets cannot legally offer betting on such events.

Industry experts warn that prediction markets could disrupt the traditional horse racing betting ecosystem, which heavily funds the sport through regulated wagering revenue. The Kentucky Derby’s betting handle reached record levels in 2025, supporting prize money, racetrack operations, and breeding programs. Shifting bets to unregulated prediction markets risks reducing this vital revenue stream, potentially harming the industry. The 2026 Derby was won by longshot Golden Tempo, trained by Cherie DeVaux, the first female trainer to win the race.