Rutgers researchers warn prediction markets accelerate teen gambling

A Rutgers University research team has published findings warning that prediction market platforms accelerate problem gambling behaviours in users under twenty, with adolescents showing faster escalation patterns than adult populations across comparable exposure periods.

The warning arrives as Kalshi's legal disputes with Utah and multiple other states dominate regulatory attention, drawing focus toward platform liability for adult users while the question of minor access has received less institutional scrutiny.

Rutgers researchers identified three compounding factors specific to prediction markets: the framing of contracts as financial instruments rather than wagers, the integration of sports data feeds that mirror fantasy sports interfaces familiar to younger users, and the speed of contract resolution relative to traditional sports betting.

The findings carry weight under the Federal Trade Commission's framework for unfair or deceptive acts affecting minors, and separately under state consumer protection statutes that impose strict liability on platforms demonstrating knowledge of underage access. The CFTC's own rules require designated contract markets to maintain written procedures reasonably designed to prevent trading by persons under eighteen.