WASHINGTON STATE — The emergence of prediction market apps like Kalshi is stirring debate over sports betting regulations. Professor Len Mead from Southern Connecticut State University explained that while these apps function like exchanges, they are not classified as gambling under the law.
“Prediction markets are not considered gambling by law, they are considered commodities trading,” Mead said. “They’re like an exchange. You’re buying a share of will the Kraken win tonight?”
Kalshi and similar apps are legal across all 50 states, including Washington, due to federal regulation by the Commodity Futures Trading Commission (CFTC). Mike Selig from the CFTC emphasized the agency’s commitment to maintaining these markets.
“Today the CFTC is taking an important step to ensure that these markets have a place here in America,” Selig said. “To those who seek to challenge our authority in this space, let me be clear, we will see you in court.”
Meanwhile, Washington state lawmakers are considering Senate Bill 6137, which would legalize betting on in-state college sports teams like WSU’s football team and Gonzaga’s basketball team. Kevin Zenishek from Northern Quest Resort and Casino supports the bill.
“We think this is a good bill because it brings the illegal market into the legal market,” Zenishek said.
However, Chris Mulick from Washington State University expressed concerns about the bill’s timing and potential risks.
“This is not a mere shift of gambling from the black market to the regulated market,” Mulick said. “The dramatic expansion of availability of sports gambling nationwide has yielded a rash of sports gambling scams.”
The safety of student athletes is also a concern. The bill would prohibit betting on individual player props for local college teams. Zenishek highlighted the importance of monitoring betting activities to prevent issues like harassment.
“If a game has a line of 4 to 1 or 5 to 1 and all of the sudden that line shifts to 9 to 1 or 11 to 1, something’s going on,” Zenishek said.
Gambling addiction remains a significant concern. AddictionHelp.com reports that a high percentage of college students gamble, with a notable portion at problematic levels. Zenishek stated that Northern Quest Casino offers resources for those seeking help.
“Every one of our team members receives training annually,” Zenishek said. “If someone feels like they want to address an issue they can take that info down and ask for help.”
However, Zenishek noted that the casino does not intervene unless requested by the individual.
“Typically a person will tell us if they’re having an issue and they need help and we’re here to provide those assistances,” Zenishek said.
