Bloomberg: Prediction Markets Are Gambling, and Congress Should Regulate Them
Bloomberg Opinion argues that prediction markets like Kalshi and Polymarket are effectively unregulated gambling operations that circumvent state-level betting regulations. These platforms, which allow users to bet on sports, politics, and other events, claim to be "event contract" markets regulated under the Commodity Exchange Act (CEA) rather than gambling businesses. This allows them to avoid age restrictions (serving users as young as 18), consumer protections, and licensing requirements that apply to traditional sportsbooks.
With nearly 90% of Kalshi’s revenue coming from sports betting, the editorial warns of significant risks including addiction, debt, insider trading, and market manipulation—citing suspicious trading activity ahead of geopolitical events. It calls on Congress to amend the CEA to clearly distinguish legitimate prediction markets from gambling, enforce consistent consumer safeguards, and restrict political event betting. The piece urges regulatory action before further harm occurs.
marsbit03/05 06:28