Prediction market platforms expand across U.S. states with limited problem-gambling resources

Prediction market platforms have expanded into states that prohibit most forms of gambling, offering users the ability to wager on events ranging from sports outcomes to entertainment awards. The platforms operate under federal oversight by the Commodity Futures Trading Commission rather than state gambling regulators, a distinction that has allowed activity in places such as Utah and Hawaii.

Growth and regulatory disputes More than a dozen lawsuits in several states challenge whether the platforms should instead be treated as gambling operators subject to state licensing. Companies maintain they offer event derivatives rather than traditional gambling products.

Limited public resources Public funding for problem-gambling prevention and treatment is absent at the federal level and often limited or nonexistent in states where gambling remains illegal. In California, the state allocates roughly $9 million annually through its health department for problem-gambling services, compared with hundreds of millions spent on tobacco and alcohol harms.

Utah reports no dedicated state or federal funding for such services despite receiving 319 calls to a national helpline in May 2025, the highest monthly total since 2017. An addiction psychiatrist at UCLA stated that expanded access and normalization of betting increases participation and noted that many affected individuals do not seek help through phone lines or online searches.

A national survey found 45 percent of Americans view prediction markets as comparable to gambling and 85 percent believe users can develop unhealthy or addictive behavior. The National Council on Problem Gambling supports legislation introduced in Congress in March that would establish the first federal funding stream for prevention and treatment resources.