Prediction Markets Test State Bans
Prediction markets are intensifying pressure on states that prohibit sports betting, exposing gaps in their ability to control gambling within their borders, Alexandra Samuels and Raga Justin report.
Because platforms like Kalshi contend they operate under federal oversight, states are struggling to enforce bans. This has created a fundamental conflict: states regulate traditional sportsbooks, but prediction markets fall outside their authority.
States like New Jersey and Nevada have tried to block prediction platforms, while Arizona even pursued criminal charges, only to see federal regulators intervene. At the same time, lawmakers in Minnesota and ...