The article discusses the rise of prediction markets in the U.S., exemplified by Polymarket, and how major media outlets are incorporating these gambling odds into their reporting. It highlights the potential erosion of trust in journalism as these markets blur the line between information and speculation. Concerns about insider betting and the integrity of public discourse are also raised.

In 2025, fintech venture funding rose 25% to $55.94 billion, with prediction markets like Polymarket and Kalshi leading the charge. They secured $3.71 billion in funding, making them the largest US rounds of the year and among the top globally, driven by growing interest in online betting.

New York Attorney General Letitia James cautions consumers against using unregulated prediction markets ahead of Super Bowl 60. She highlights the lack of consumer protections on these platforms, while companies like Kalshi assert they are regulated by the CFTC. Concerns include insider trading and the overall integrity of these betting markets.

This article examines the rise of prediction markets like Polymarket and Kalshi, where users bet on various events, including political outcomes and celebrity news. As their popularity grows, concerns about gambling implications, market manipulation, and insider trading have emerged alongside significant investments and media partnerships.

Kalshi, a prediction market platform, has raised $1 billion at an $11 billion valuation, following a previous $300 million round. The company competes with Polymarket and allows users to bet on various future events, while navigating legal challenges related to gambling regulations.

Kalshi, a leading prediction market platform, accused a stock analyst of conducting an extortion plot after the analyst reported that users were losing money at a faster rate than on traditional gambling sites. Following the backlash, Kalshi retracted its statement, highlighting the tension in the growing prediction market industry.

Coinbase is suing regulators in Michigan, Illinois, and Connecticut over their attempts to classify prediction markets as unlicensed gambling. The exchange argues these markets are financial derivatives under federal oversight, which could pave the way for broader access if they win. The lawsuits come amid a shift towards federal regulation, following the appointment of a pro-innovation CFTC chairman.

Polymarket has sued Massachusetts, claiming that the U.S. Commodity Futures Trading Commission (CFTC) has exclusive authority over prediction markets, not state regulators. This lawsuit highlights growing tensions as states attempt to classify sports-related prediction contracts as gambling, which would require local licensing. Recent rulings in Massachusetts and other states have further complicated the legal landscape for prediction market operators.

Prediction markets are gaining traction as a new frontier in finance, offering a platform for users to place bets on the likelihood of various events, from sports outcomes to political elections. As these markets blur the lines between gambling and investing, they provide valuable information and insights that can influence decision-making in both consumer and professional spheres. However, this rise raises concerns about potential gambling addiction and the implications of democratizing speculation.