Comment Text:
A ridiculous amount of insider trading occurs in prediction markets like Kalshi. If not outright abolished, they need to be regulated at least as much as casinos. On Polymarket, a very small percentage of addresses (less than 1%) account for the vast majority of profits.
Prediction markets can be inflated by companies like Kalshi Trading, LLC, whose job it is to inflate the markets and receive various benefits for doing so.
The outcome of a gamble can also be changed to benefit whomever has the most money. An entity called Universal Market Access (UMA) determines whether outcomes meet criteria via tokens. For instance, a bet to determine whether someone wears a blue tie but that person instead wears a cyan tie can be determined by the amount of tokens acting as votes. The problem is that these tokens can be bought, so if someone ultra wealthy has bet that the tie would be blue could then spend money on tokens to ensure that the UMA declares the tie is blue to win the bet.
Moral arguments for betting even violent outcomes aside, we should not have to live in society dictated by gambling. I argue that prediction markets be heavily regulated, if not abolished completely, to prevent yet another scheme among many whose purpose is to transfer the meagre earnings of the many to the hands of the few elite who have so much already.
