Regulation Could Address Issues in Prediction Markets

Published by the Manhattan Institute, City Journal focuses on urban policy matters.

Across America, individuals are wagering billions through prediction markets. These platforms allow users to put money on outcomes such as election results, album sales, and sports events. Despite the nature of these activities resembling gambling, they aren’t classified as betting in a legal sense.

Officials and the operators of these markets view them as investment platforms. The contracts for events they offer are considered a specific type of financial derivative.