Prediction markets surge in US as public health advocates call for support to combat gambling | US news
Troubled health advocates have warned that public health resources across the US are failing to keep up with the rapid growth of online gambling after Donald Trump endorsed the controversial rise of prediction markets across the country.
Prediction market platforms, where users can bet on everything from Tony Award winners to World Cup goals, have brought betting even further into American life.
Leading brands like Kalshi marketed aggressively around the NBA finals. Polymarket’s logo was pasted on the cage that hosted UFC fights at the White House last Sunday.
The controversial crackdown on such platforms across the US, including in states where gambling has long been banned, means that they now operate in markets with limited public resources for problem gamblers and heavily advertise their services.
“When you expand access, availability, and normalization, you will have greater engagement,” said Timothy Fong, an addiction psychiatrist and gambling researcher at UCLA. “The more involvement and involvement you have in risky products, the more problems you’re going to encounter, the more side effects you’re going to encounter.”
Since the U.S. Supreme Court struck down a long-standing federal ban on sports betting in 2018, the digital gambling industry has boomed. Sports betting is now legal in 39 states and Washington, DC. Recently, the importance of prediction market platforms has increased rapidly.
Companies such as Polymarket and Kalshi argue that they are not gambling operators, which are typically regulated on a state-by-state basis and require approval to operate. Instead, they claim to offer “event derivatives” that are federally regulated by the U.S. Commodity Futures Trading Commission (CFTC).
This distinction has so far allowed prediction markets to operate in much of the country, including states like Utah and Hawaii where gambling has long been illegal. More than a dozen lawsuits filed in multiple states challenge that interpretation; regulators and lawmakers argue the platforms should fall under the state’s gambling laws.
The Trump administration was sympathetic to the industry’s arguments. And the US president weighed in last month, claims It is “critically important” that the CFTC has “exclusive authority” over prediction markets rather than states. “This is a big industry and we must protect it.”
“Congress, through the Commodity Exchange Act, has granted the CFTC specific authority to regulate exchanges, including prediction markets, to provide a federal framework and avoid a patchwork of conflicting state laws,” a CFTC spokesman said.
They added: “The CFTC will defend this jurisdiction against overzealous states that seek to circumvent federal law.”
As legal battles in the state continue and the industry continues to grow, problem gambling experts and advocates warn that gambling addiction is “out of control” and public health resources remain inadequate.
Resources for problem gambling are “extraordinarily far behind,” Fong said. He stated that the state spends in California approximately $9 million per year It spends hundreds of millions of dollars a year through the Department of Health to address problem gambling, but not to address tobacco and alcohol-related harm.
“The big question has always been: Who is responsible for aid?” said Fong. “Who is responsible for meeting the needs of people harmed by these products?”.
“Through executive actions, supporting legislation like the GENIUS Act, and other common-sense policies, the administration is delivering on the President’s promise to make the United States the crypto capital of the world by promoting innovation and economic opportunity for all Americans,” the White House said in a statement.
There is currently no specific federal funding stream for the prevention or treatment of gambling addiction. In states where gambling remains illegal, public funding is also often limited or non-existent.
For example, in Utah, home to some of the strongest anti-gambling laws in the United States, NO Federally or state-funded resources dedicated to problem gambling.
While the state is reporting relatively low official rates of gambling addictionSome citizens are asking for help. Despite Republican leaders’ opposition to prediction markets, they still operate in the state with the president’s support.
The National Council on Problem Gambling (NCPG) helpline, which relies on donations, has received nearly 18,000 calls from Utah residents since 2016. May 2025 319 calls were recorded from Utah alone; This is the highest monthly total since 2017. The organization has not yet published figures for 2026.
Fong said the increase was not surprising given the growth of online betting and prediction markets. He also added that the actual number of people with gambling problems is probably higher.
Fong said many people who were harmed “never picked up the phone, never did a Google search.” “They just endure it. They suffer in silence.”
Cole Wogoman, NCPG’s director of government relations and league partnerships, said the hotline “can only offer resources if resources are available in the respective states.”
In Utah, he said, the organization can offer callers budgeting guidance and information about peer support groups and telehealth counseling services, which often require health insurance. But there isn’t much else.
Gamblers Anonymous There is only one in-person meeting in Utah, St. GeorgeAlthough virtual meetings have expanded access since the pandemic.
“Even though there is no legalized gambling in Utah, that doesn’t mean people aren’t still gambling,” said Michael C, a trustee of Gamblers Anonymous whose district includes parts of Utah. Michael said he also sees things like “day trading and stocks” as a form of gambling, “because if you don’t have any control over the outcome, you can’t do no.”
While some users of prediction markets may view the platforms as a form of entertainment or investment, the companies also argue that they are not technically gambling platforms. Psychiatrist Fong said he had “no doubt that many aspects of bidding in prediction markets are gambling.”
A. latest NCPG research 45% of Americans believe prediction markets are comparable to gambling, while 27% said they are most similar to investing. The survey also found that 85% believe users may develop unhealthy or addictive behaviors related to the platforms.
Elliott Rapaport, founder and CEO Birch HealthAny activity that “combines money, uncertainty and risk” can lead to “compulsive behavior” for some users, said the nationwide online therapy for gambling addiction recovery. “It is very important to have the social infrastructure of the state, because otherwise people will suffer,” he added.
Rapaport said he sees Birches “getting more help” from people in states where gambling isn’t technically legal because “there’s no government safety net and no access to government care there.”
Rapaport said lawmakers need to recognize that their constituents “are gambling, they’re betting on sports, they’re engaging in risky, compulsive trading behavior, regardless of whether it’s legal or not.”
While many states with legal gambling funding cite gambling resources as an issue through tax revenues from state-licensed casinos or sports betting sites, Wogoman said states without that funding can still allocate funding sources through their general budgets.
Calls for intervention continue across the country. NCPG has it. supported the Points LawIntroduced in Congress in March, it would create the first stream of federal funding for gambling addiction prevention and treatment resources.
“It has been a long time since the federal government took this addiction seriously,” Wogoman said.
