TLDR Platforms like Kalshi and Polymarket are expanding fast across the US, including in states where gambling is illegal Public health experts warn that addiction support resources are not keeping up with the growth of online betting Kalshi and Polymarket classify themselves as event derivatives sellers under federal CFTC oversight, not gambling operators California spends just $9m a year on problem gambling — far less than it spends on tobacco and alcohol harms The Points Act, introduced in Congress in March, would create the first federal funding for gambling addiction treatment
Prediction markets are growing fast in the United States. Platforms like Kalshi and Polymarket now let users bet on everything from Tony Award winners to World Cup goals. But public health experts say the systems meant to help people with gambling problems are not keeping up.
Kalshi ran ads around the NBA Finals. Polymarket had its logo displayed on the cage at a UFC event held at the White House last Sunday. The industry is pushing hard for mainstream visibility.
The rapid growth of digital betting traces back to 2018, when the Supreme Court overturned the federal ban on sports betting. Since then, sports betting has become legal in 39 states and Washington D.C. Prediction markets have followed a similar path.
How These Platforms Operate Outside State Gambling Laws
Kalshi and Polymarket argue they are not gambling operators. They say they sell event derivatives and should fall under federal oversight from the Commodity Futures Trading Commission, not state gambling regulators.
That argument has allowed them to operate in states like Utah and Hawaii, where gambling has long been banned. More than a dozen lawsuits have been filed across multiple states challenging this position.
The Trump administration has sided with the platforms. President Trump said last month