Prediction Markets Face Global Crackdown: How US Sportsbooks Are Adapting to New Rules

In the past 48 hours, the sports betting industry faces heightened regulatory scrutiny on prediction markets, a fast-growing segment challenging traditional sportsbooks. Brazils government blocked access to 28 platforms including Polymarket for non-compliance with federal gambling laws, as announced by Finance Minister Dario Durigan on Friday[1]. In the US, Maryland Governor Wes Moore issued an executive order banning state employees from using insider information on prediction markets to bolster public trust and curb risks like insider trading[5]. This follows a US special forces soldier charged for winning 409000 dollars betting on Venezuelan leader Nicolas Maduros removal using confidential info[5]. FanDuel is accelerating efforts to catch up in prediction markets, where platforms like Kalshi and Underdog Predict operate under CFTC regulation as derivatives rather than state gaming commissions[1][2][8]. Underdog Predict launched sports event contracts for NBA, NFL and more within its app, enabling trading on outcomes[8]. Fanatics Sportsbook, a newer entrant, leverages league ties and brand strength to gain US market share against leaders like DraftKings, FanDuel, BetMGM and bet365[4][6]. No major deals, product launches beyond Underdog or market disruptions surfaced in the last week, with California sports betting still unlicensed into 2026[3]. Consumer behavior shows no verified shifts, though prop betting remains popular on top apps[4]. Compared to late 2025, when DraftKings rolled out consumer protections like Early Exit, current focus tilts to regulatory containment of prediction markets over expansion[3]. Leaders respond by emphasizing compliance: FanDuel pursues CFTC-aligned prediction tools, while states tighten insider rules. Vig fees persist as sportsbooks core revenue model, unchanged[7]. Overall, traditional betting holds steady amid prediction markets regulatory turbulence. (Word count: 278) For great deals today, check out https://amzn.to/44ci4hQ This content was created in partnership and with the help of Artificial Intelligence AI.