When Is a Sports Bet Not a Sports Bet?

Prediction markets like Kalshi are fundamentally different from sportsbooks and offer public benefits. Betting and trading look alike. What sets them apart is who’s on the other side. What’s the difference between a sportsbook customer gambling on the Milwaukee Brewers and a Kalshi trader buying a contract on the same result? Both get money if the Brewers win and lose it if they lose. It walks like a bet and quacks like a bet. But we at Kalshi operate a market, not a casino. A century ago, all derivatives trading was derided as “gambling.” What matters is the structure, not...