Story perspectives

U.S. Prediction Markets Surge Amid Legal Challenges and New Entrants

10/29/2025

Summary

Story summary

Prediction markets in the United States are growing, with weekly trading volumes exceeding $2 billion.
Platforms such as Kalshi and Polymarket are attracting attention from investors and users.
Kalshi says it operates legally in all 50 states, despite regulatory challenges including a lawsuit by the New York State Gaming Commission.
The platforms allow users to trade on various outcomes, including political elections.
DraftKings and FanDuel are entering the prediction market space, signaling a strong future.

History

Historical Context

The Commodity Futures Modernization Act of 2000 legalized certain derivatives, enabling the rise of prediction markets in the U.S. Notable platforms like Kalshi and Polymarket now report weekly trading volumes exceeding $2 billion. This growth mirrors the expansion of online gambling, which has faced regulatory scrutiny, including lawsuits from the New York State Gaming Commission, highlighting the complex legal landscape of these emerging markets.

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Story summary

Prediction markets in the United States are growing, with weekly trading volumes exceeding $2 billion.
Platforms such as Kalshi and Polymarket are attracting attention from investors and users.
Kalshi says it operates legally in all 50 states, despite regulatory challenges including a lawsuit by the New York State Gaming Commission.
The platforms allow users to trade on various outcomes, including political elections.
DraftKings and FanDuel are entering the prediction market space, signaling a strong future.

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