Comment Text:
Prediction markets seem to be a very clear example of gambling (e.g. why else would the vast majority of event contracts be on sporting events outcomes?). Prediction markets advertise as if they are gambling (often using the words 'bet' or 'odds', even if the market itself isn't an odds maker).
Unlike futures contracts, which can be used for speculation (betting) but have many legitimate purposes for hedging risks (e.g. a farmer removing market risks by selling corn futures before planting the season's crops), there are no real cases in event contracts, as provided by dealers today, for hedging or other concerns.
