NEW YORK CITY — U.S. Representative Alexandria Ocasio-Cortez floated a ban on advertising for prediction markets, comparing potential regulatory approaches to those used against the tobacco industry. The New York Democrat said she was open to a variety of ideas for regulating the emerging industry.

"I think there's a lot of things that we can learn from regulation of the tobacco industry that we can apply here," Ocasio-Cortez said. "Just like when we took on Big Tobacco, there was a large array of different regulations that were brought up to effectively rein in the industry."

Restrictions on the tobacco industry have included a ban on television advertising for cigarettes, requiring cigarettes to be sold behind store counters, and raising the minimum age to purchase cigarettes.

The congresswoman expressed concern about the societal impact of prediction markets. "Pervasive gambling is not good for society. It turns life into a casino, traps people in addiction & debt, surges domestic violence, and fosters manipulation," she said.

Ocasio-Cortez described a recent Polymarket licensing deal with Major League Baseball as sad. She also said that Kalshi's recent steps to combat insider trading were not enough. Both companies are major players in the prediction markets sector.

The representative said she was worried about the potential for influence and intimidation by money from the prediction market industry. "Frankly, we need to start with not getting this place bought off by them," Ocasio-Cortez said, referring to Congress.

Beyond advertising restrictions, she indicated openness to various regulatory approaches. "Some folks say, listen, we shouldn't have any gambling except for Vegas and Atlantic City, and that there should be that physical friction. And if you want to go out there and do that, cool," she said.

Prediction market companies Kalshi and Polymarket contend that their services constitute a form of trading rather than gambling. These companies seek to avoid coming under state-level gambling regulations, particularly for sports trades.

"It really depends on how much mass popularity we can get," Ocasio-Cortez said regarding the potential for regulatory action.