Jared Diamond

State regulators then make their own laws.

around gambling in those states.

That's why whatever state you're in, the gambling rules on FanDuel or DraftKings might be a little bit different.

Now here comes prediction markets.

They say, we're not gambling.

We don't fit the sort of criteria for gambling.

And it has to this point, federally regulated by the CFTC as a financial product, which for now is allowing it to operate

Everywhere in Texas and California, those are the two big states that have no legal sports betting.

Well, hey, we're not sports betting.

So we're able to operate here.

And they are.

Now, you can imagine how some of the stakeholders feel about this.

California and Texas are saying, hey, this is sports betting.

We didn't legalize this.

How are you allowed to do this in our state?

Meanwhile, states where sports betting is legal, say Ohio, Massachusetts, many of them are saying, wait a second.

We have sports betting laws.

You're skirting them.

And we're not getting the tax revenue that's supposed to come from legal betting.

So they're upset.