Source: Bloomberg (paywall)
Prediction-market platforms like Polymarket operate as information markets rather than gambling services, sidestepping state-level sports betting prohibitions in California, Texas, and nine others. This exposes a structural gap: state gambling regulators built frameworks around traditional sportsbooks and casinos. They now compete with decentralized platforms offering functionally identical bets, weaker compliance standards, and no tax revenue sharing. The gap between outdated prohibitions and the reality of 50-state wagering will force a regulatory response.