According to CoinMeta, as reported by Coinpaper, while prediction markets and sports betting both provide similar outcomes related to sports events, their pricing structures, market mechanisms, and regulatory frameworks differ significantly. Bettors place bets on the New York Giants winning in sports betting, while in prediction markets, they purchase contracts that stipulate a payment of $1 if the Giants win. Although these two activities may seem similar, they may fall under completely different legal categories. Sports betting is typically regulated by state gambling authorities, whereas federal-regulated prediction markets like Kalshi claim that their event contracts are derivatives supervised by the Commodity Futures Trading Commission (CFTC). This distinction has become one of the biggest regulatory controversies in the U.S. financial sector. In September 2026, New Jersey requested the U.S. Supreme Court to rule on whether state gambling laws could be applied to sports contracts offered by federally regulated prediction markets. Kalshi indicates that the resolution criteria and official sources for each contract are determined before trading. In the second quarter of 2026, Robinhood generated $156 million in revenue from these event contracts, surpassing the $129 million it earned from stock trading.