Researcher warns prediction markets pose gambling risks akin to sports betting
University of Washington researcher Uttara Ananthakrishnan warned that prediction markets can pose gambling risks comparable to sports betting for people with problem gambling issues. The comment came in coverage of America's worsening gambling problem, as prediction-market platforms expand their user bases and product offerings. Ananthakrishnan's assessment applies specifically to users with existing gambling vulnerabilities rather than the general population.
Ananthakrishnan's warning arms state regulators already treating prediction markets as gambling products rather than CFTC-regulated derivatives. Missouri AG Hanaway's halt order against six platforms shows regulators are listening, and her framing matches the researcher's equivalence claim. Operators like Kalshi and Polymarket now face a two-front defense: federal CFTC registration does not preclude state gambling classification.
Problem-gambling advocates become unpredictable allies; NCPG's Kalshi partnership already triggered staff resignations and tribal criticism. Platforms expanding user bases fastest carry the highest exposure if states cite this research to justify bans. The IGRA and gambling-risk arguments are merging into a single state playbook that CFTC preemption may not stop.