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State of Play’s TL;DR
- A Loyola University Chicago article outlines how prediction markets and sports betting are colliding with state rules, age limits, and consumer-protection concerns.
- The school has expanded coursework on the gambling industry.
Loyola University Chicago is putting prediction markets, sports betting regulation and gambling-related harms under the microscope in one of the first undergraduate courses in the country focused specifically on sports gambling.
The school’s latest analysis highlights a growing split between federally regulated prediction markets and state sports betting rules, especially in Illinois.
As sports wagering becomes more embedded in US sports culture, Loyola says students entering the industry need to understand not only the business side but also the regulatory and ethical questions that come with it. That includes the rise of platforms such as Kalshi and Polymarket, which the university says are helping push sports betting toward a broader prediction-market model.
Loyola course focuses on regulation, ethics, and industry structure
According to the university, Loyola’s Sport Management Program launched the undergraduate course in Spring 2025. The class examines the business and regulatory structure of sports gambling and asks students to consider addiction, responsible gambling, and ethical issues tied to the sector.
Noah Henderson, a clinical assistant professor and director of Sport Management at Loyola University Chicago’s Quinlan School of Business, said the goal is to help students understand the forces shaping sports gambling as future professionals, regulators, and executives.
The article also connects that academic focus to wider responsible gambling work on campus. Loyola’s School of Social Work, Cicero Family Services, and the Illinois Department of Human Services host the annual Latine Problem Gambling Conference, where Loyola faculty, student athletes, and athletics leaders have delivered featured presentations.
Prediction markets are testing the line between federal and state oversight
Loyola’s analysis points to a key distinction for US bettors and operators: Traditional sports betting is governed state by state, while federally regulated prediction markets fall under the Commodity Futures Trading Commission.
The article cites the 2018 Supreme Court decision in Murphy v. NCAA as the turning point that opened the door for state legalization. It says 39 states and the District of Columbia have since legalized sports betting, including Illinois.
But Illinois rules differ sharply from the structure described for prediction markets. Loyola says Illinois sports betting is limited to users 21 and older and prohibits wagering on Illinois collegiate teams. By contrast, the article says prediction market platforms such as Kalshi and Polymarket allow users starting at age 18.
That mismatch is now part of a bigger legal and policy debate. Loyola says the ability of prediction market services to pre-empt state regulation is being litigated across the country.
Why this matters for the market
The university notes that major sportsbook brands, including DraftKings Sportsbook, FanDuel Sportsbook, and BetMGM Sportsbook already spend heavily on sponsorships across leagues, teams, and media companies, underscoring how deeply gambling has entered the sports business.
At the same time, Loyola warns that gambling-related harms can disproportionately affect communities already facing economic and social vulnerability. The takeaway is straightforward: the next phase of sports wagering is no longer just about legalization. It is also about who regulates the product, who can access it, and how consumer protections keep pace.
Based on reporting by Loyola University Chicago.
