Prediction Markets Leave Users With Fewer Gambling Safeguards

Prediction-market platforms are pushing to be governed only by federal swaps rules, displacing the state gambling laws that regulate casinos in Nevada and New Jersey, according to a Roosevelt Institute analysis published September 22. Kalshi , described in the analysis as the largest US prediction-market platform, contends its contracts are swaps used by sophisticated investors to hedge risk. Regulators in Kentucky, Nevada, and New York have challenged that framing directly.