Are gambling markets becoming entertainment first, betting second?

With online betting on the rise in the US and the rise of entertainment-focused prediction markets, is the identity of gambling evolving?

The atmosphere of gambling is changing rapidly as more innovations enter the space. Prediction markets are encroaching on the space of traditional gambling companies, with market leaders like Kalshi partnering with major brands like CNN to establish a foothold in the traditional media space.

CNN partners with Kalshi to integrate prediction markets into its global newsroom.

The first major news network to embrace Kalshi prediction markets.

A new era of media is here. pic.twitter.com/uXLlWVLjQs

— Kalshi (@Kalshi) December 3, 2025

The growing prevalence of prediction markets means that cultural or entertainment-based contracts are becoming ever more synonymous with betting. A quick glance over Kalshi’s bets, for example, shows some you’d expect from traditional sportsbooks, but also some more unusual options, such as “What will Carmelo Anthony say during The Tonight Show Starring Jimmy Fallon?”, or “‘Avatar: Fire And Ash’ Rotten Tomatoes score?”

What’s more, traditional gambling brands are chasing down people’s attention spans with more and more entertainment or game-driven approaches. Microbets during live sports events and same-game parlays become quickfire, low-cost bets that are seen more as part of the fun of watching live sports than taking a risk on a bet.

“The gambling industry is reframing itself into something that doesn’t feel like gambling at all, and that’s exactly what worries me,” said Aja Chavez, Vice President of Adolescent Services at Mission Prep Healthcare, a teen residential health care center, while speaking to ReadWrite. “My clients don’t see themselves as gamblers anymore. They’re ‘engaged fans’ using apps that look like social media.

“The industry has successfully rebranded betting as entertainment, and it’s working. People spend hours on these platforms without recognizing it as gambling because it feels like just another part of watching sports. When I ask them about it, many genuinely don’t connect their daily app use with what their parents did at the bookies.”

This isn’t necessarily something wholly new, of course. Casinos, perhaps one of the most traditional forms of betting, has always leaned into the glitz and glamor of the spectacle.

What is new, however, is how prevalent this entertainment-meets-gambling atmosphere is when it can be funnelled out to everyone via gaming apps and online slots games.

Gambling is becoming increasingly woven into places typically reserved for entertainment. You can find gambling odds and prediction markets seamlessly on social media platforms like X, exposing more people to betting-style services from new demographics.

A new type of bettor

As the lines blur between entertainment and gambling, it brings new people into the world of betting. While that’s not inherently a bad thing, the lack of proper awareness about problem behavior can leave them exposed to risks they’re unused to handling.

Indeed, David Weisselberger, founding partner of Erase The Case, a law firm dedicated to assisting individuals in resolving their criminal history, has seen a rising number of first-time offenders being charged with petty theft or embezzlement. Each offense tends to be for less than $1,000 and was sparked by attempts to cover up or fund weekend ‘fun’ betting losses, often through misappropriating company funds or small-scale fraudulent acts.

“The traditional risk assessment models used by regulators do not capture this demographic of users because they do not gamble frequently enough or with the desperation of a traditional gambling addict,” Weisselberger explained to ReadWrite. “However, they continue to support their families and hold down full-time employment until they get arrested.”

Although on a small scale that tends to slip under the radar, these are more early indicators of potentially harmful behavior that could get missed.

“Prop Bets and In-Game Micro-Wagers create a mental framework that causes users to see their betting activities as a form of media consumption and not as high-stakes wagering,” added Weisselberger. “When a user places ten $50 prop bets on whether a quarterback’s passes will be completed, he/she views the activity as paying a premium for an enhanced viewing experience. It creates a lower barrier to entry for those who may never walk into a casino because they do not perceive themselves as gamblers.”

Change is required

While this is all well and good for gambling companies, it opens up new and potentially worrying questions about gambling-related harm reduction.

“In terms of how we should measure risk and harm, our traditional ways were built for a different era,” explained Chavez. “We look for things like chasing losses, lying about money, or desperate financial situations. These still matter, but they miss something crucial about modern betting.

“What I’m seeing now is a new pattern. People are losing money gradually through constant, small bets, and they’re spending enormous amounts of time on these platforms. By the time those classic warning signs appear, the psychological hooks are already deep.”

In the US, some of the signs that gambling operators need to keep an eye out for as part of social responsibility demands include escalating bet sizes, chasing losses, increased deposits, prolonged play, and signs of financial issues like borrowing money.

However, as Chavez points out, micro bets might not result in these early signs in the same way, but the same unhealthy and damaging behaviors could still be taking root, especially among vulnerable people.

“I believe we need to start looking for different red flags,” Chavez said. “We need to ask questions about how much of someone’s time and mindspace the platform consumes, whether betting has become woven into their identity as a fan, and just how normalized it’s become in their daily life. That’s where the harm starts now.”

Gambling hasn’t just changed form – it appears to have changed meaning.

Featured image: Unsplash

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