Will prediction markets and exchange betting emerge as the next major disruptor in the US gaming industry? As new platforms and regulatory frameworks evolve, these products are reshaping conversations around compliance, oversight, and market structure.

On April 1, 2025, KPMG LLP hosted a timely discussion examining the current state of exchange betting and prediction markets and their potential impact on the US gaming industry. The session focused on the legal, regulatory, and tax considerations driving this emerging space and what they may mean for industry stakeholders.

WilmerHale Counsel Reade Jacob spoke on the legal and regulatory implications of prediction markets and exchange betting, drawing on his experience advising gaming and betting companies on complex regulatory and enforcement issues.

Topics of discussion included:

• Background on exchange betting and prediction markets
• Key federal and state regulatory considerations
• Potential tax implications for CFTC regulated exchanges and market participants