Chris Christie Warns Against Prediction Markets, Calls for Legal Action to Protect Sports Integrity

Prediction markets have surged in popularity in 2025, with Kalshi and Polymarket leading the sector. Traders have poured billions into bets on everything from sports to economic events. The two platforms processed more than $44 billion in trading volume this year.

Chris Christie, former New Jersey governor, has called for legal action against prediction markets. He argues these platforms undermine the integrity of sports and must be stopped. Christie predicts a potential Supreme Court showdown over the issue.

Experts are divided on the future of prediction markets. Some believe these platforms offer greater accuracy than traditional polling methods. Others caution against the risks of manipulation and regulatory backlash.

Why Did This Happen?

Kalshi and Polymarket have expanded their reach through partnerships with major media and finance firms. They also received regulatory approval from the Commodity Futures Trading Commission in 2025. This support has fueled their growth.

Challengers like Gemini, Crypto.com, and DraftKings are entering the space. These firms are launching their own platforms to compete with Kalshi and Polymarket. Gemini received CFTC approval to operate a prediction market platform in December.

What Are Analysts Watching Next?

Investors and analysts are tracking the regulatory landscape closely. Prediction markets face uncertainty due to state-level enforcement actions. Some states view sports prediction markets as illegal gambling according to industry reports.

The long-term outlook for prediction markets remains optimistic. Clear Street analysts estimate the total addressable market could reach $14 billion by 2030. The data and analytics potential of these platforms could drive their evolution according to Clear Street analysts.

Prediction market platforms are also expected to generate significant trading volumes. Clear Street projects $1.2 trillion in annual volume by 2030. This could attract more institutional and retail investors according to market projections.

What Are the Risks?

Trust and transparency are critical for new entrants in the prediction market space. Platforms must ensure outcomes are settled as advertised to build credibility. Manipulation issues have previously affected Polymarket according to industry analysis.

Regulatory challenges remain a major concern. While Kalshi and Polymarket have received federal approval, they face legal actions from states. These enforcement efforts could limit their expansion according to legal experts.

Prediction markets are expected to continue evolving in 2026. The entry of major players like Coinbase and Gemini could reshape the landscape. The FIFA World Cup and U.S. midterm elections may further drive adoption according to market forecasts.