Sports Betting or Prediction Markets?

[Axtremus]

https://www.nytimes.com/2025/10/05/upshot/sports-betting-prediction-markets.html?unlocked_article_code=1.rU8.UTxW.pjmj8AfS6l0i

Calling it "sports betting"? It's illegal in many states.
Calling it a "prediction market"? It's legal -- regulated federally and out of the reach of state laws.

How does an operator or a "prediction market" distinguishes its practice from "sports betting"? It claims that in "sports betting" the bookmaker keeps the money when bettors lose their bets, where as a "prediction market" maker facilitates trading of futures contracts tied to sporting outcomes between users and take a cut of the proceeds as "service fee."

Do you buy this?

Maybe expect more "sport betting" operations to restructure themselves into "predictive markets."