Prediction markets like Kalshi and Polymarket have seen explosive growth over the last year. These platforms allow people to put money on the outcomes of everything from local elections to the Super Bowl.

But an epic battle is underway between state regulators and these companies. At least 20 federal lawsuits have been filed against these companies. The cases claim these markets are simply gambling by another name and should be regulated like betting platforms.

Now, the federal government is putting its thumb on the scale, arguing prediction markets should be looked as as a financial exchange, not a betting platform. This paves the way for their further expansion, not regulation. What does the future hold for companies like these?

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