Americans bet a record $1.76 billion on Super Bowl LX, the championship match between the Seattle Seahawks and the New England Patriots on Feb. 8, amid strict state bans on traditional sports betting. The record reflects the use of alternative platforms such as prediction markets and fantasy sports rosters, which controversially circumvent state laws.
California, the host state of Super Bowl LX, remains opposed to sports betting. In 2022, Californians faced two ballot measures: Proposition 26 would have allowed in-person betting at horse racing tracks and tribal casinos, and Proposition 27 would have legalized online sports betting. Supporters spent $300 million in advertising, twice the $150 million spent by opponents, making it the most expensive ballot measure in California history. Californians overwhelmingly rejected both measures.
The minimum legal gambling age remains 21 for traditional casinos, but expanding online options for 18-year-olds and weaker age verification may pose risks to younger users, public health officials say.
With traditional betting banned, Californians find new ways to participate in the nationwide excitement. Prediction markets such as Kalshi and Polymarket allow users to trade contracts with payouts tied to real outcomes. These contracts are regulated by the Commodity Futures Trading Commission (CFTC), freeing them from state gambling restrictions.
Another popular option is daily fantasy sports, where users draft virtual teams of real athletes and earn rewards based on individual performance.
Alternative online gambling is raising concerns about youth access. Social media influencers increasingly promote gambling sites and encourage viewers to participate through promotional deals. Punishments between friends for underperforming fantasy sports rosters often involve posting embarrassing videos on social media, helping increase exposure and normalize gambling as casual entertainment.
The expansion of gambling options caters to younger or casual audiences. During Super Bowl LX, betting extended beyond simple win-loss outcomes to nearly every facet of the event. Novelty bets, including the color of the Gatorade dumped on the winning coach and the length of the national anthem, turned even minor moments into wagering opportunities for new users.
As prediction markets expand, several states have attempted to assert jurisdiction. For example, the prediction site Kalshi is in legal battles with regulators in New York, Maryland, New Jersey, Connecticut and Tennessee. Still, the company is not afraid to advertise in these litigious states. In New York, Kalshi promoted their platform by offering users $50 toward groceries, while competitor Polymarket opened a five-day free grocery store, widely seen as a reference to New York Mayor Zohran Mamdani’s proposal for city-run stores.
Mamdani opposes the sites, even as they align with his affordability initiatives. Responding to the Polymarket store, he shared a photo captioned, “Heartbreaking: the worst person you know just made a great point.”
Legal scholars warn that conflicting court rulings may send the matter to the U.S. Supreme Court. Meanwhile, the CFTC is siding with prediction markets.
“The CFTC will no longer sit idly by while overzealous state governments undermine the agency’s exclusive jurisdiction over these markets by seeking to establish statewide prohibitions on these exciting products,” CFTC Chair Michael Selig said.
