The strongest version of this narrative frames prediction markets as a regulatory loophole that enables unchecked gambling under the guise of financial innovation. By operating under the CFTC rather than state gambling laws, platforms like Kalshi and Polymarket have expanded rapidly, with Kalshi’s Super Bowl trading volume surging 2700% in a year. Proponents of the bill argue that these markets are indistinguishable from traditional sports betting, exploiting federal oversight to bypass state pr...