Despite murky legal landscape, companies are undeterred in their prediction market investments

Key points

• In this photo illustration, Apps for online prediction market sites are shown on an electronic device on Feb.
• 25, 2026 in Chicago, Illinois.
• States and the federal government may be battling over who has the power to regulate prediction markets, but the companies building them are chugging along as the platforms continue to experience huge growth.
• The Commodity Futures Trading Commission and six states across the country are in lawsuits over who has the jurisdiction to develop regulations on event contracts.
• Seventeen states in total are challenging companies with prediction markets — like Kalshi, Polymarket, Coinbase and Robinhood — and one has moved to ban them entirely.