TLDR Platforms like Kalshi and Polymarket are expanding rapidly across the US, including in states where gambling is illegal Public health advocates warn that addiction support resources are not keeping pace with the industry’s growth Kalshi and Polymarket claim they sell event derivatives, not gambling products, placing them under federal CFTC oversight Over a dozen lawsuits across multiple states are challenging that classification The Points Act, introduced in March, would create the first federal funding for gambling addiction treatment Prediction Markets Expand Into Every Corner of the Country
Prediction market platforms like Kalshi and Polymarket have grown quickly across the United States. Users can now bet on outcomes ranging from Tony Award winners to World Cup goals.
The platforms have been pushing for visibility. Kalshi ran ads around the NBA Finals, and Polymarket’s logo appeared on the UFC cage at the White House last Sunday.
This growth follows the Supreme Court’s 2018 decision to overturn the federal ban on sports betting. Sports betting is now legal in 39 states and Washington D.C.
Kalshi and Polymarket argue they are not gambling operators. They say they sell event derivatives and fall under federal oversight from the US Commodity Futures Trading Commission, not state gambling laws.
That argument has allowed them to operate in states like Utah and Hawaii, where gambling has long been illegal.
The Trump administration has backed that position. President Trump said last month that it was critically important for the CFTC to keep exclusive authority over prediction markets.
A CFTC spokesperson confirmed the agency has jurisdiction over swaps, including prediction markets, and said it would defend that authority against states attempting to bypass federal law.
More than a dozen lawsuits have been filed across multiple states. Regulators and lawmakers in those states argue the platforms should