Prediction markets are regulated by the federal Commodities Futures Trading Commission, even in states that don’t allow gambling. That could spark a legal battle to define an industry with little oversight in fields from sports to national security.
Congress and the postal service are discussing if reducing delivery days, increasing stamp prices, closing rural offices, or other structural changes would close the gap.
Manipulation is a big problem in sports betting. Prediction markets could be even worse. So far, the industry has largely been making up the rules as it goes.