Texas Medical Association Targets Prediction Markets
The Texas Medical Association (TMA) is urging state lawmakers to regulate prediction market platforms, arguing they can encourage gambling addiction among adolescents and young adults. The Texas Medical Association is calling for a minimum age of 21 and new safeguards for online prediction market platforms, warning that the fast-growing betting apps could put Texas adolescents at risk of addiction. TMA, the largest state medical society in the nation with more than 60,000 physician and medical student members, advocates for improvements to state law based on policy adopted by its physician members.
Warning that the adolescent brain is primed to take risk and citing data that a rising number of underage males are betting, Texas physicians are urging the state to make 21 the minimum age for usage of prediction markets. Prediction market platforms allow users to bet on future events, from the outcome of sporting events to election results, through apps typically accessed on smartphones.
The Loophole: Are Prediction Markets Just “Vegas in Their Pockets”?
While there’s a smattering of tribal casinos in the U.S. that allow 18-year-olds to wager, the prevailing betting age for casinos, iGaming and regulated sports betting in this country is 21 years old. That requirement isn’t applicable to prediction markets because those entities aren’t regulated comparably to casinos. Plus, the industry is attempting to position itself as akin to financial markets, opening the door for 18-year-olds to procure accounts.
Because the platforms are not classified as gambling under the legal definition, they fall outside Texas gambling laws and are instead regulated by the federal Commodity Futures Trading Commission, the association noted.
Dr. Lindy McGee, former chair of TMA’s Committee on Child and Adolescent Health, notes that while prediction markets aren’t legally defined as betting outlets, the exchanges have “all of the psychological trappings of gambling.” McGee, a pediatrician involved in the push, told KERA that prediction markets are “no different psychologically than any other type of gambling,” even if they do not technically fall under that legal category.
McGee also warned about easy access for younger users: “Basically, you have a situation right now where high school seniors are legally walking around with Vegas in their pockets.” She said she knows teens who accumulated thousands of dollars in debt on online platforms before turning 21, adding that “the younger you start, the more likely you are to become addicted to it.”
Youth Gambling Addiction: Hard Data and Adolescent Risk
“Concerns over young people using these apps trouble physicians who worry that young males are more likely to develop problem-gambling behaviors, driving many into addiction and other negative behavioral health impacts,” according to the association. Scores of studies indicate vulnerabilities among young people, particularly males, to problematic wagering patterns.
“More than 35% of boys aged 11 to 17 report having gambled in the past year, according to one study,” notes the TMA. “Another found 58% of 18 to 22-year-olds surveyed engaged in at least one sports betting activity.” McGee points out that adolescent brains are “primed to take risks,” making young people vulnerable to addictions to alcohol, nicotine and wagering.
Proposed Prediction Market Advertising Rules to Protect Teens
How physicians, policymakers, regulators and therapists address those issues isn’t always uniform, but the TMA has some suggestions for its home state. The Texas debate is notable because it targets access and marketing rather than just legality. A 21-plus rule would mirror the age standard commonly seen across much of the US gambling industry, while ad restrictions would aim squarely at how these platforms reach younger audiences.
In addition to the 21 age requirement, the association wants Texas to restrict prediction market advertising near schools and parks and on social media platforms known for drawing adolescents. The group also wants ads barred from using celebrities, cartoons, or characters from games and shows marketed toward teens and children.
The State vs. Federal Clash: Polymarket and Kalshi Respond
The move adds another layer to the national fight over whether platforms like Kalshi and Polymarket are regulated financial products, gambling-adjacent products, or both in practice. Texas is one of 11 states where sports betting is illegal, so any new scrutiny of prediction markets lands in a state that has long taken a restrictive approach to wagering. Texas is the second-largest state by population and it doesn’t permit online sports betting, making it fertile territory for all-or-nothing exchanges to fill voids for bettors.
A Polymarket spokesperson said state legislative efforts “run counter” to the federal regulatory framework overseen by the Commodity Futures Trading Commission. “We look forward to addressing these claims through the appropriate legal process.” KERA reported that it did not receive a response from Kalshi or the Coalition for Prediction Markets before publication.
The physicians’ push comes as the Texas Senate Committee on State Affairs conducts an interim study on what it describes as the sudden inundation of prediction market gambling and the exploitation of federal law to circumvent Texas gambling prohibitions. Lt. Gov. Dan Patrick previously instructed the Senate State Affairs Committee to study prediction markets as possible gambling loopholes, giving the issue a clear foothold in Texas policy discussions.
As of yet, the state hasn’t officially moved to a 21 and up requirement for prediction market trading, but earlier this year, Texas policymakers acknowledged various issues around yes/no exchanges could be examined during the 2027 legislative session. That tension matters beyond Texas. Prediction markets have become a live issue in US gambling regulation because they sit near the boundary between trading and wagering. If lawmakers in a major state move to impose age and advertising limits, other states could be watching closely.
Sources: Todd Shriber (Casino.org), Ian St. Clair (PlayUSA), and original reports via The Texas Dispatch / KERA News.
Leo Falsafi is a digital marketing veteran and senior journalist at Virlan.co, where he covers the intersection of digital marketing, gaming, and breaking US trending news. With nearly two decades of hands-on experience in SEO and digital strategy, Leo has consulted for and scaled hundreds of companies. His deep industry roots allow him to deliver sharp, fact-checked insights and analysis on the trends shaping today's digital landscape.