Prediction markets often get labeled as "not gambling," but that framing misses the actual reason.

The distinction isn't rooted in skill requirements or quality of research—it's purely a regulatory classification. These platforms operate as peer-to-peer futures contracts, which places them under CFTC jurisdiction rather than gambling statutes.

It's the legal structure and regulatory framework that determines the categorization, not the inherent nature of the activity itself. Understanding this difference matters when discussing compliance, risk management, and how these instruments fit into the broader financial landscape.