Prediction markets face a tricky regulatory puzzle in the US. While Polymarket secured CFTC approval through intermediaries, that blessing doesn't translate smoothly across state lines. Kalshi's ongoing legal battles show the real friction—several states are pushing to classify these platforms under gambling statutes, directly contradicting federal regulatory oversight. The tension between state-level enforcement and federal guidance keeps the entire sector in murky waters. Until this patchwork resolves, platforms and users alike operate in a zone of genuine legal ambiguity.