Prediction markets are facing increased scrutiny from state regulators and traditional sportsbooks over their sports-based contracts. In response, leading platforms Kalshi and Crypto.com, along with Robinhood, Coinbase, and Underdog, recently launched the Coalition for Prediction Markets to defend and promote the industry’s political and regulatory interests.
Prediction markets allow trading on events across politics, entertainment, climate, technology, and sports. Sports contracts are at the center of the controversy.
The American Gaming Association (AGA), which represents major casinos such as Caesars and MGM, has labeled sports prediction markets as “sports betting” in advertising campaigns. Several states, including New York, Nevada, Massachusetts, and Connecticut, have also issued legal challenges arguing that certain prediction markets fall under state gambling laws.
