Prediction Markets and Casinos Clash Over Sports Betting

In eight years sports gambling in the United States has grown from an illegal enterprise to a business that processes $220 billion in bets each year; this weekend alone some $1.8 billion is set to be wagered on Super Bowl LX. That expanding pool has intensified competition among FanDuel, DraftKings and BetMGM and attracted new rivals: prediction markets such as Kalshi and Polymarket, which by one estimate siphon off about $8 billion a year from sportsbooks.

Prediction‑market firms say their contracts differ from casino wagers and fall under Commodity Futures Trading Commission jurisdiction rather than state gambling regulators, and they argue federal oversight preempts state law. States have legalized sports betting in 39 states and Washington, D.C., but prediction platforms allow people to wager even where state sports betting remains banned, prompting regulators, attorneys general and customers to bring at least 20 federal lawsuits in more than seven states.

The dispute has reached both courts and regulators. C.F.T.C.

United States, Washington, D.C.