The prediction market industry just picked a fight with nearly every state in America. A coalition of 44 states has now aligned against prediction market platforms that offer sports-related event contracts, arguing these products are functionally identical to sports betting and should be regulated accordingly. Kalshi currently operates sports prediction markets in 44 states but faces legal action from at least a dozen of them for alleged gambling regulation violations. If courts eventually side with the states, prediction market platforms would need to obtain gambling licenses in every jurisdiction where they operate. Prediction market platforms operating under CFTC supervision face different, and arguably lighter, regulatory burdens.