Thus far this year, we've seen plenty of debates when it comes to prediction markets and how it is impacting sports betting as a whole in the USA. When it comes to California betting news, countless headlines have been made due to places like Kalshi and others being used in the state. With that said, lawsuits have been filed and there's no question that a U.S. Senator being involved with prediction markets drama will help California.

Recently, Senator Maria Cantwell, from Washington, spoke at a subcommittee hearing and prediction markets were of course brought up. As you might have been able to guess, Cantwell discussed the urgency of getting things figured out here, as sports bets continue to be made online even where they have not yet been made legal. This has been a growing concern and the need for change is needed soon.

“So, my state wants to know why the Indian gaming [operations] – who basically have lived by the rules in their state and lived by the rules of a regulated entity – are now all of a sudden competing with somebody that is not a regulated entity that’s basically offering the same product," Cantwell brought up. “If the prediction markets are allowed to keep operating unchecked does this pose an existential threat to both tribal sovereignty and to Indian Country, and what can Congress do to better protect gaming?”

Cantwell brings up a great point here, as local Indian tribes all over the USA are pushing to continue to run things, but now with prediction markets getting involved, tribal sovereignty indeed is brought into question. With Indian tribes looking to take the lead on things in California too, it will be interesting to see what their take is on all of this, as they're the ones expected to be the driving force for the sports betting push.

California tribes continue to eye 2028 as the year to legalize California sports betting

Speaking of sovereignty, it's important to keep in mind here too that California tribes continue to eye 2028 as the year to legalize California sports betting. The most-recent efforts didn't go too far, as people in the state simply could not get on the same page in terms of developing the right kind of sports betting bill. This is a problem that local citizens in California are used to by now, which is a problem.

Looking ahead, however, it's going to be important for the local tribes to get together and make sure they knock things out of the park with the next bill that gets presented to lawmakers and officials. There tends to be plenty of opposition for legal sports betting in the state, particularly with online options. This is a problem that doesn't seem like it's going to be going away in the near future.

With that said, if prediction markets continue to operate like Cantwell pointed out, then how is this fair as a whole? California is missing out on a ton of potential sports betting tax revenue, as they're currently not getting any money from prediction markets despite things being used inside of state lines. Because of this, there's a bit of urgency for 2028 to be the year when the green light is given.

Prediction markets betting isn't slowing down in California right now

What's a growing problem here for Cantwell and others too here is that prediction markets betting isn't slowing down in California right now. With futures bets being sky-high, people in California continue to check the best MLB sportsbooks for updated odds on the Los Angeles Dodgers and then placing their futures bets through the prediction markets.

This is a loophole that isn't going away and as the season progresses, the numbers are only going to go up. Once the NFL season gets here too, we're only going to see things skyrocket, as NFL betting is king in the USA and that's going to heat up once fall camp gets here too - then of course once the regular season gets here too.

All in all, the prediction market headaches are continuing at a high rate and while legal action is being taken and Senators are getting involved too, there's no definitive date or strategy for when change will be coming in. California is one of double-digit states without legal sports betting, both in-person and online, and things won't be coming until 2028 at the earliest. With that, prediction markets can stay in operation until thing, but plenty of people are pushing for that to change soon.