DraftKings and FanDuel are introducing their own prediction market platforms, signaling a significant industry shift and demonstrating resilience despite distancing from the American Gaming Association.

Fanatics Markets becomes the first national sportsbook-branded prediction market app, expanding to 24 states and operating in non-sports-betting jurisdictions under a commodities-style framework.

Regulators in seven or more states have issued cease-and-desist orders or filed suits, arguing these markets are wagers requiring licenses; tribes and traditional gaming groups are opposing the platforms.

Industry momentum and funding are strong, highlighted by Kalshi’s roughly $1 billion funding round (implied valuation near $11 billion), extensive media partnerships, and high daily trading activity across platforms.

Kalshi has faced legal challenges in several states, with Nevada weakening its preemption claim, while Massachusetts and New York allege unlicensed gambling, and a California ruling suggests CFTC-regulated contracts may not be wagers under state law.

Prediction markets are rapidly moving toward mainstream finance as major operators launch platforms, while regulators in the U.S. push back with enforcement actions.

The leading platforms include Kalshi, Polymarket, Robinhood, and Crypto.com, all facing growing regulatory scrutiny and ongoing multi-state legal battles over whether these contracts are unlicensed gambling or regulated investments.

Major leagues and media are engaging with the sector, with the NFL proceeding cautiously, the NHL partnering with Kalshi and Polymarket for data, and broad consumer interest fueling regulatory pressure and potential legislation.

The market is transitioning from a niche tool to a mainstream financial product as leading operators roll out platforms and regulators intensify scrutiny in the United States.