As most of you know, when it comes to California betting, things are not legal and 2028 feels like the earliest things can get done for both the in-person and online efforts. However, prediction markets are approved at the federal level, which has caused plenty of issues in the Golden State. With this, online betting for California's Governor race has reached an alarming number. That's because according to a report, more than $13 million worth of wagers have come in.

That's certainly raising plenty of eyebrows. Per a report, those bets have come in via Kalshi and Polymarket. Right now, Tom Steyer is the betting favorite to win this race, with plenty of money being put on him to come out on top. He holds the best odds to win this one, as Gavin Newsom is in his second term and he's not eligible for reelection. In California, you have a max of two consecutive terms.

So, while everyone is waiting to see who will end up taking over for him, plenty of bets are being placed. This is not ideal, as those bets could impact the race overall. Think about it, people could end up just putting money down on a candidate and then vote that way to try and win money. If we see this increase, it's going to have people questioning the legitimacy of the race, which is the last thing officials in California want.

Newsom understandably is not happy about this either, as he has been pushing for the prediction markets to be brought to a stop in California for a little while. There are several lawsuits in place, but it's totally up in the air if things are going to be fixed soon or not. With the Governor vote around the corner too, this is a problem that isn't going to go away in California. It's all a major headache for several reasons.

California officials are not happy with votes potentially being swayed

Again, this is all quite murky and California officials are not happy with votes potentially being swayed. Think about it, with millions of dollars being bet on this race and odds being updated, it will have people thinking they could cash in on the flip in the odds and percentages. Steyer indeed is the favorite to win it, so if anything, people are going to be more inclined to bet on him and then vote for him later this year too.

“These predictability markets can actually have an impact on elections because people are looking at this the way they see polls,” Sacramento Assemblywoman Maggy Krell said via KCRA News in California. “Is there a front-runner? They see how much has been bet and that could start to skew perception.”

It's incredibly easy to agree with what Krell had to say there. People are going to rethink their bets and votes if they see that someone is trending to win the race. This is the kind of issue that people in California wanted avoided at all costs, but with Kalshi in full operation, there's little to nothing that can be done. Newsom is hoping that's going to change in the coming months, but it truly is unclear if the lawsuits will go in California's favor or not.

Prediction markets continue to be an issue for sports betting as well

As you probably could have guessed, prediction markets continue to be an issue for sports betting as well. As things stand, NHL betting, NBA betting and MLB betting is in full swing due to action going on each night. People are also checking the best NFL sportsbooks on a consistent basis last week for the 2026 NFL Draft.

While there are no legal online sports betting options, something local tribes are working to change in the near future, the prediction market apps are being used around the clock for betting needs. People are having a ton of fun in California placing future bets on their favorite teams, which doesn't feel right at all due to the current state laws.

Just like with the political betting, Newsom is on his grind to make sure the sports betting doesn't continue for much longer either. This is an on-going problem for him and one that he's not having much luck with. Until things change, sports betting is going to continue to be on the rise in the state, while people will also use bookies and other illegal methods as well. The only way this will change is if legalization comes through down the road.