Prediction markets continue to expand into sports, even in states where traditional sportsbooks remain prohibited. NBC News recently published an article examining how platforms such as Kalshi and Polymarket are offering Super Bowl-related event contracts nationwide, including in jurisdictions like California where sports betting is illegal.

The core issue remains one I have discussed frequently:
Are these transactions financial contracts — or bets?

California, for example, has a century-old statute that makes it a misdemeanor to accept, record, or make a bet on a sports event. Yet prediction market platforms operate there by structuring their offerings as contracts traded on federally regulated exchanges rather than wagers handled by licensed sportsbooks.

As I noted in the NBC News article, there is a strong possibility that federal courts will allow these platforms to continue operating while the legal disputes work their way through the system. The classification question — whether prediction markets fall under federal commodities regulation or state gambling law — remains unsettled.

The growth in trading volume surrounding the Super Bowl demonstrates how significant this issue has become. With millions of dollars being traded on these platforms, regulators and courts will ultimately have to decide where the line is drawn.

I appreciate NBC News including my perspective on this evolving legal landscape.

Read the full NBC News article here:
https://www.msn.com/en-us/news/news/content/ar-AA1VIMp4