It Looks Like Sports Betting… But It Isn’t

Sports betting is “illegal” in these states… so why are people doing it anyway?

Forget everything you thought you knew about sports betting law.

Because right now, multi-billion dollar companies are rolling out betting-style products in California, Texas, and Florida—states where mobile sports betting is supposed to be off-limits.

So how is it happening?

Because it’s not technically “betting.” It’s trading a financial asset.

This episode breaks down the prediction market shockwave that’s reshaping sports, finance, and regulation—fast.

Here are the 6 things you’ll understand by the end (and you’ll never see sportsbooks the same way again):

1) You’re trading probability — not betting against “the house.” In prediction markets, you buy a YES or NO contract. If the price is 20 cents, the market thinks that outcome has a 20% chance of happening.

2) The platform isn’t your opponent — another person is. Sportsbooks take the opposite side of your bet. Prediction markets match you with another trader. The exchange just collects a fee.

3) That single detail changes everything legally. If the platform isn’t taking risk… it looks less like gambling and more like a financial exchange.

4) The real regulator isn’t the state — it’s the federal government. Prediction markets fall under the CFTC (Commodity Futures Trading Commission). That’s why these products can reach states where sportsbooks can’t.

5) Liquidity becomes the hidden risk. If nobody is trading your contract… you might not be able to cash out early. You could be “right” and still stuck.

6) The corporate strategies tell you who’s scared. Fanatics is going for untapped states. DraftKings is testing different rule sets by state. FanDuel is being ultra cautious—because they don’t want to upset gaming regulators.

At the end, we’ll leave you with the real question: Will prediction markets force states to rewrite what “gambling” even means? Or are we headed toward two parallel systems forever?

If you ever want to buy or sell a property anywhere in the world, our team would be honored to help get you to your next destination.

Until next time, stay curious, stay hungry, and as always… stay ALL IN!

Amit Bhuta COMPASS ALL IN Miami Group Licensed Real Estate Agent

[phone] Mobile [e-mail] ALLinMiami.com