New York Attorney General Letitia James has issued a warning to consumers about the risks associated with unregulated prediction markets ahead of Super Bowl 60. She emphasized that these platforms lack the consumer protections found in regulated environments, urging New Yorkers to be cautious with their money. Prediction markets like Kalshi and Polymarket are set to see significant trading volume related to the Super Bowl, allowing users to bet on various outcomes, including game events and commercials. James criticized these platforms for offering products that resemble bets disguised as event contracts, which should be regulated by the Commodity Futures Trading Commission (CFTC). While Kalshi acknowledged the importance of regulation and stated that its platform complies with CFTC guidelines, Polymarket has not commented. James highlighted the need for oversight to prevent issues like insider betting, warning that many prediction markets operate without the basic protections consumers expect. Contracts on these prediction markets function similarly to all-or-nothing options, trading between $0 and $1 based on market actions. In addition to commercials, users can place bets on various aspects of the game, including halftime show songs and traditional outcomes like rushing yards. However, skepticism remains regarding the CFTC's ability to effectively regulate these markets, especially following recent budget cuts that have weakened the agency. The CFTC Chairman indicated that although a proposed rule to ban prediction trades on sports and politics was withdrawn, new regulations are expected soon.