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Fullstory's September survey of over 1,000 US consumers found 35% of bettors now use sportsbooks less because prediction markets like Kalshi and Polymarket offer better experiences. These platforms exploit a CFTC-regulated commodities loophole, avoiding state licenses and betting taxes. The American Gaming Association estimates over $500 million in lost state tax revenue, with legal challenges unfolding in Illinois, Nevada, New Jersey, and Maryland.
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