How are prediction markets regulated differently than sports gambling?

By Rena Rowe

Published April 9, 2026 6:48pm ET

Since 2024, prediction market platforms such as Kalshi and Polymarket have surged in popularity, drawing users, media partnerships, and scrutiny from both sides of the political spectrum.

Users can wager on real-world outcomes from politics to sports, blurring the line between financial instruments such as markets, which are federally regulated, and gambling, which is largely regulated by the states.