Prediction markets face regulatory scrutiny in US and Canada

prediction markets CFTC Polymarket Kalshi financial regulation

Prediction markets are facing increasing regulatory scrutiny and legal challenges in North America. In the United States, the Commodity Futures Trading Commission (CFTC) is asserting exclusive federal authority to regulate these markets, leading to legal conflicts with state regulators in New York, Arizona, Connecticut, and Illinois.

In Canada, the emergence of platforms like Polymarket and Kalshi has prompted concerns regarding market manipulation and gambling addiction. Experts note that current regulatory frameworks have not yet caught up to the technology, leaving gaps in oversight regarding money laundering and participant rules.

As the industry expands, new financial products are being developed. FutureSports, in partnership with CME Group, plans to launch performance indexes that turn sports statistics into tradable financial benchmarks, targeting sophisticated retail investors rather than traditional sports bettors.

Entities

CME Group · Commodity Futures Trading Commission · FutureSports · Kalshi · Michael Selig · Polymarket · White House

Claims

What the coverage asserts, and how many sources carry each claim.

[○ 1 SOURCE] The CFTC filed a lawsuit against New York in April regarding prediction markets. gambling911.com
[○ 1 SOURCE] FutureSports aims to launch on September 28, pending regulatory review. www.nytimes.com
[○ 1 SOURCE] Prediction markets are currently not regulated by gambling regulators in Canada or the United States. allard.ubc.ca
[○ 1 SOURCE] The CFTC claims exclusive federal authority to regulate prediction markets. gambling911.com
[○ 1 SOURCE] Polymarket recorded $21 billion in trading volume in 2025. remote3.co