SOUTH BEND, Ind. -- There are many ways to gamble. You can bet on an app, sports betting sites, prediction markets, etc. But what’s being done to regulate it?
Christina Gray is the Executive Director for the Indiana Council on Problem Gambling.
“In Indiana, we have sports betting that you can do online. That is the only real legalized online gambling that you can do. However, there are many sites out there that have some form of what we would consider gambling, and that's like Candy Crush or some of these slot machines online,” said Gray. “It's not –it's not always about the money. It's about getting to that next level.”
Gray says prediction markets do count as gambling. They aren't regulated by states, but by the Commodity Futures Trading Commission (CFTC), a federal agency that typically oversees commodities trading, like soybean futures and oil derivatives.
“So, you know, the prediction markets, it's the same thing. It's even though they want to call it a contract, they're still placing money on an outcome that they're not totally sure about to get something from it, so yeah, that's -- that's gambling,” said Gray.
Prediction markets have been in the news recently.
Kalshi is reportedly looking into trades that correctly predicted the next white house press secretary.
Polymarket is facing recent calls for more regulation, now introducing safeguards commonly seen in a sportsbook setting.
According to ESPN, just this month, the NFL pushed for the Supreme Court to weigh in on prediction markets, saying the body governing this industry may not be prepared to police the integrity of sports.
“Sports betting is regulated in the state because sports bettors have to be licensed before they can be, before their product can be offered to the state of —to the people of Indiana,” said Gray. “Prediction markets, they're considered a federal level, so the state has no regulations over that.”
According to Gray, 23 percent of people in Indiana have placed a sports bet in the last year.
She says sports betting companies have to make sure everyone using the platforms is at least 21, but it's a different story for prediction market sites.
“I think that's a big controversy between the states and the federal level, because where the state says, ‘Hey, you have to be 21 to go in and bet on in sports betting,’ whereas the federal government and these prediction markets, which are allowing contracts on sporting events -- you only have to be 18. And I'll tell you right now, the problem we're having, where we're seeing an increase in people having a problem with gambling, is 18- to 34-year-olds, and there, and it's mostly men, but the women are catching up. But we have, we have really seen an increase in that,” said Gray.
Gray says prediction markets are new, so the council hasn't been able to study them too much yet.
Here are some signs that someone may be struggling with a gambling problem, according to Gray. They may be missing out on what’s going on in their life, spending a lot of time gambling on their phone, talking about wins but never losses and having mood swings.
If you or someone you know needs help, there are resources available and you can call the Indiana problem gambling hotline number at (1-800-994-8448).