- The legal conflict between sports betting and prediction markets is being decided in courts, with the U.S. Supreme Court likely to have the final say.
- Sports betting is regulated by states following the 2018 Supreme Court decision, while prediction markets operate under federal law, allowing them nationwide.
- New York's attorney general has sued Kalshi for illegal gambling, seeking injunctions, $36 billion in penalties, and fines per instance of unlicensed sports wagering.
- Prediction markets claim sports-based events aren't gambling, but this is widely rejected; the core issue is federal authorization vs. state rights.