Marketplace The deal with "back door" betting
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Oct 10, 2025 Betting on anything? Dive into the world of prediction markets like Kalshi and Polymarket, which capitalize on sports betting while evading strict regulations. Explore the potential legal challenges they face. Curious about car sales? The ending of the EV tax credit may lead to a sales slump. Plus, rethinking air travel subsidies versus rural bus services raises questions about accessibility and cost. With trade policy uncertainties looming, there's plenty to unpack on the economic front.
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Prediction Markets As A Regulatory Loophole
- Prediction markets like Kalshi and Polymarket functionally mirror sports betting but avoid gambling regulations by classifying trades as contracts.
- That regulatory gap lets them operate nationwide, tapping huge sports-betting demand where traditional sportsbooks are restricted.
Product Features Mimic Traditional Betting
- Platforms are expanding sports-style features, like parlays, to attract bettors used to traditional sportsbooks.
- Legal challenges are mounting and the issue may escalate to the Supreme Court, putting the business model at risk.
Big Money Backs Prediction Markets
- Major investors poured money into prediction-market firms this week, signaling confidence in their growth potential.
- That investment surge reflects belief these platforms can monetize sports-betting demand outside existing regulatory frameworks.