Americans lost hundreds of billions on crypto speculation. Why is only some of it considered gambling?
Americans are on track to lose record amounts on legal gambling in 2026, with sportsbook and casino losses projected above a quarter-trillion dollars. Since COVID-19, gambling losses have surged, alongside rapid growth in sports betting, prediction markets, short-term options trading, and speculative crypto assets. These activities often involve the same behavior—risking money on uncertain outcomes—but face very different rules depending on whether they are treated as gambling, investing, or derivatives trading. That split is now driving a major regulatory fight over prediction markets, especially sports-related contracts, with states, the CFTC, and gambling operators split over jurisdiction. Research links legalized sports betting to higher debt delinquency and more intimate partner violence. The core argument is that regulation is outdated: oversight should track actual risk, loss speed, and addiction potential rather than legal category.
