A Democratic congressman had harsh criticism for Polymarket for allowing users to bet on the date the U.S. would confirm the rescue of Air Force service members shot down over Iran.
As prediction markets explode, the new firm called 5(c) Capital, will back startups supporting the burgeoning category.
Since FanDuel and DraftKings are subject to state-by-state gambling laws, rather than federal law, they would not be impacted by the bill.
MLB is only the latest in a string of recently announced partnerships involving the prediction market.
Six newly-created accounts made a profit of $1 million by correctly betting that the U.S. would strike Iran by February 28.
The company said such trades violates its internal company policies about using confidential information for personal gain.
Kalshi fined the MrBeast editor, Artem Kaptur, for over $20,000.