Prediction Markets Test Limit Of State-Level Sports Bet Bans (1)

April 15, 2026, 9:00 AM UTCUpdated: April 15, 2026, 3:08 PM UTC

Prediction markets are reshaping the long-running fight over legal sports betting, giving bettors in holdout states a way in and complicating efforts to regulate the industry.

The shift comes as lawmakers try to apply rules designed for traditional sportsbook platforms, such as DraftKings Inc. and FanDuel Inc., offering sports-related contracts under a different federal framework. Those operators have built dominant mobile platforms in states where sports betting is legal.

But prediction platforms such as Kalshi are offering sports-related bets in states that ban sportsbooks and are being backed up by federal agencies and courts, leaving states searching for ways ...

Learn more about Bloomberg Government or Log In to keep reading:

See Breaking News in Context

Providing news, analysis, data and opportunity insights.

Already a subscriber?

Log in to keep reading or access research tools and resources.