The Regulatory Arbitrage

How do you turn gambling into a multi-billion dollar financial market? You simply find the right loophole-and bet that no one is clever enough to close it.

This is the untold, high-stakes story of the $25 billion regulatory arbitrage that shook American governance to its core. Prediction market platforms like Kalshi and Polymarket achieved the impossible: federal approval to operate as derivatives exchanges, allowing them to sell contracts on everything from NFL games to presidential electio...