What happened
The regulator sent cease-and-desist letters to 10 prediction markets and brokers. Each has until 16 October to confirm it has stopped offering sports contracts to people in the state.
What prediction markets are
Prediction markets let users buy and sell contracts tied to the outcome of an event, such as an election result or the winner of a game. Supporters call them financial tools. States that regulate gambling say a contract on a sports result works like a bet.
The platforms generally argue they fall under federal financial oversight, not state gambling law. That disagreement is playing out in several states.
Why it matters
Licensed sportsbooks must follow state rules on age checks, advertising and responsible-gambling tools. If sports contracts sit outside those rules, players may not get the same protections, such as deposit limits or self-exclusion.
Reports also say Kalshi, Polymarket and an industry coalition have spent at least $3 million on lobbying and donations in 2026 as states move to rein in prediction markets.
