‘The ads got to me’: College-age adults are rushing to prediction market sites. Addiction experts are alarmed

Key Points:

• An 18-year-old high school senior, Andrew, used prediction markets like Kalshi to make money but experienced a gambling spiral, highlighting concerns about under-21 access to these platforms due to a legal loophole classifying prediction markets as financial products rather than gambling.
• Prediction markets allow anyone over 18 to trade on event outcomes, unlike traditional sportsbooks with 21+ age limits, raising alarms among addiction experts and regulators about young adults' vulnerability to gambling addiction.
• The Commodity Futures Trading Commission (CFTC) regulates prediction markets federally and resists state restrictions, leading to ongoing legal battles as 41 states and D.C. push back against prediction markets circumventing state gambling laws.
• Some prediction market companies, like Kalshi, have introduced voluntary measures to protect younger users, including deposit limits and health initiatives, while others like Fanatics have set a minimum age of 21 for participation.
• Lawmakers from both parties are calling for federal action to raise the minimum age to 21 and increase regulation, citing growing harm and the need for stronger consumer protections for young adults exposed to these platforms.