12/11/2025
There has always been a blurred line between crypto and betting, with financial and gambling addiction experts arguing that crypto is a lot closer to gambling than it is to investing.
That grey area has now expanded - thanks to a new loophole that has led to some investing apps introducing sports betting under a different guise.
“Event contracts” or “Prediction markets.”
On the Robinhood website, event contracts are described as follows:
“An event contract is a type of financial derivative that allows traders to speculate on the outcome of a specific event. These contracts are generally structured around Yes or No outcomes, and fluctuate in price based on the projected outcome of the event. Event contracts then pay out if the position held matches the correct outcome of the event; otherwise, they expire worthless.”
In simpler terms, you’re paying to guess the outcome of an event - and if you’re right, you make money.
Now, we can look at the Oxford dictionary definition of betting:
“The activity of playing games of chance for money.”
The two look uncannily similar, right?
That’s because they are.
Typically, we’d argue that day trading, particularly crypto or with leverage, is just another form of gambling. However, the lines are getting even blurrier with the inclusion of event outcomes.
How is this allowed?
In markets where it’s legal, companies offering sports betting need gambling licences, users have to go through age checks, and self-exclusion tools must be available. But some investment platforms have found a way around that - by calling their bets “event contracts” or “prediction markets”.
Even industry insiders agree. Former journalist and gambling consultant Dustin Gouker told ESPN, “There’s no doubt that it’s gambling.”
No Safety Nets
Here’s the worrying part.
Because these products are labelled as “trades” instead of bets, they don’t have to follow the same rules as gambling companies. That means they lack even the most basic protections for consumers. This means:
- You can “bet” inside an investing app, even in places where gambling isn’t legal.
- Self-exclusion, deposit limits, and age checks may not apply.
- Gambling-style products can appear right next to your regular investments.
- For those recovering from gambling, this mix of investing and betting can be dangerous.
What's being done?
Several US gambling regulators have already stepped in, ordering Kalshi to stop offering sports-based markets. Their argument is simple: these so-called “event contracts” are indistinguishable from regular sports bets.
Despite multiple cease-and-desist orders, Kalshi is continuing to operate nationwide by claiming that its sports markets are federally regulated financial products, not gambling.
But here’s where it becomes even more concerning.
While traditional sportsbooks are required to verify users are 21 or older, Kalshi only asks that users be 18. That may not sound like much of a gap, but it means millions more people - including college students - now have even easier access to gambling-style products.
How can Gamban help?
Call it trading, call it investing - but if you’re guessing outcomes for profit, it’s a gambling product dressed up in a suit and tie. Until regulators catch up, the burden falls on users to recognise the risk hiding behind the deceptive “personal finance” label.
If you’re concerned about engaging too much with these platforms, download Gamban.
If a trading platform offers any of the following, it will be added to our block list:
- CFDs
- Cryptocurrency exchanges
- Binary options
- Forex trading
- Event contracts
Even without these new “prediction markets”, people are already surrounded by gambling. It’s everywhere: on TV, social media, streaming platforms, podcasts, and even in esports and influencer content. Every match, stream, and highlight reel seems to have betting odds or sponsorships embedded in the coverage.
Now, with investing apps quietly adding betting-style features, that exposure grows even further. It’s not just on sports broadcasts or betting sites anymore, it’s creeping into finance, where people wouldn’t normally expect it.
For someone who’s struggled with gambling, this constant exposure can be overwhelming. The reminders, ads, and cross-promotion of “predictions” that make it appear harmless means it’s much harder to stay in control or stay away altogether.
If you’re trying to keep gambling out of your life, Gamban can help make sure it stays that way.
