A significant FBI operation resulting in the arrest of an NBA player and coach has intensified the debate over regulation in the rapidly expanding prediction market sector. This development comes amid the NHL's first licensing agreement with a prediction market platform and DraftKings' acquisition of a similar company, underscoring the mainstream acceptance of these platforms. Experts express concern that the Commodity Futures Trading Commission (CFTC) is ill-equipped to oversee the burgeoning market, which is largely self-regulated. Platforms like Kalshi and Polymarket face criticism for inadequate oversight, raising fears of insider trading and weak enforcement. Despite these regulatory challenges, the sector's trading volume has reached $2 billion, with projections suggesting it could grow to $95 billion by 2035.