The World Cup is the obvious stress test.
That is why football sits at the heart of this argument. Traditional sportsbooks are tightly controlled state by state in the US, yet prediction markets appear to offer a route into similar territory even where sports wagering remains illegal. For fans, the distinction can look technical. For regulators, it is the whole case.
The report says courts have not spoken with one voice.
That leaves the market in a strange place: growing quickly, but with its legal footing still under challenge. The update also says contracts now stretch beyond match winners and group standings into more unusual World Cup questions, which will only sharpen scrutiny.
Critics argue these products can mirror gambling without the same local oversight, consumer protections or age rules. Supporters, meanwhile, appear to view them as regulated exchanges rather than sportsbooks. That split is why lawmakers and leagues are watching closely, especially around markets linked to injuries, scheduling and outcomes that could be vulnerable to manipulation.
The next chapter may arrive well before the tournament begins. With the August 1 Minnesota deadline looming and more legal action possible, the road to 2026 may be shaped not just by squads and stadiums, but by courtrooms and regulators.