Comment Text:
Dear Chairman and Commissioners,
My name is Carson, and I'm writing from Arizona to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I've used platforms like Kalshi a few times to place bets on various events. I see it as a gambling app, plain and simple, and I know many of my friends here use Kalshi and even Polymarket for the same reason. I'm writing because I believe prediction markets like Kalshi are a dangerous form of unregulated gambling that disproportionately benefits those with inside information. We would not allow this to take place in our financial markets, and it would not be allowed in any form of gaming either.
Prediction markets let me wager on just about anything, from elections to economic data and sports, even if sports betting isn't legal in my state.
I see how prediction markets can provide better information for public decision-making, but I don't believe this makes up for the social harm and potentially dangerous ramifications of allowing betting on everything under the sun, from the weather to the removal of world leaders. Events contracts already exist in financial markets, but this is clearly a form of gambling advertised as such to a young audience, especially young men. Gambling addictions are socially destructive, and even if a majority of users game with safeguards, there will be a portion of users that won't stop when they should. Gambling addiction can lead to domestic abuse, inability to support oneself financially, and has the highest suicide rate of any addiction.
When sports has already become integrated with gambling, I worry what will happen when everything becomes something to gamble on. I have relatives who have destroyed their lives and their families' security due to gambling addictions, and I believe we're entering a dangerous period where gambling isn't considered gambling, and these companies are able to operate with little regulation. How can a problem gambler escape their addictions when gambling becomes everything? It used to be that they could just restrict themselves from casinos in Vegas, now they can lose everything with a tap on their phone. Is the price of more information worth the destruction of so many lives and communities?
I urge you to support regulation of prediction markets to protect users and prevent insiders from trading on these markets. Thanks for taking the time to read my thoughts.
Sincerely,
Carson L.
