Prediction markets let people wager on anything from a basketball game to the outcome of a presidential election — and recently, even the fate of the U.S. and Israel’s war against Iran.

Kalshi and Polymarket are tightening their rules on insider trading as Congress appears to be moving closer to cracking down on prediction markets.

Arizona has become the first state to file criminal charges against Kalshi, accusing the prediction market platform of operating an illegal gambling business within its borders.

Utah is at the forefront of a states' rights battle between itself and prediction markets like Kalshi and Polymarket.

The Trump administration has backed Kalshi and Polymarket in a court fight over whether prediction markets constitute gambling.