Gambling

Prediction Market Apps: What They Are and How They Work

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A prediction market is a marketplace where participants buy and sell contracts tied to the outcome of future events. The price of each contract reflects the market’s collective assessment of how likely that event is to occur. A contract trading at $0.65 implies a 65% probability. The model aggregates information from many participants, often beating … Read more

Gambling Laws and Prediction Market Apps

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SUMMARY Prediction market apps like Kalshi claim federal CFTC regulation as derivatives exchanges exempts them from state gambling laws, allowing nationwide operation even where betting is banned. Seven states issued cease-and-desist orders, arguing these platforms are essentially unlicensed sportsbooks evading state authority and taxes. Courts have split on preliminary injunctions. This federalism clash pits innovation … Read more