Prediction Markets and Sports Betting

Sportsbooks and trading apps are beefing up U.S. prediction markets — from standalone platforms like Polymarket and CFTC‑regulated Kalshi, to in‑app integrations via Robinhood (and soon Coinbase) and sportsbook‑tied offerings such as Fanatics Markets and DraftKings Predictions — aiming to embed event betting where users already hold funds and potentially siphon activity from traditional sportsbooks. The push has met regulatory headwinds: DraftKings’s service is unavailable in at least 11 states amid state-by‑state legal talks, major operators have split from the American Gaming Association which argues prediction markets are unlawful, and lawmakers are proposing a federal ban on insider trading in prediction markets after lucrative Polymarket trades, even as firms like Kalshi say they already prohibit such conduct.