Prediction Markets: Just Gambling?
https://www.ozy.com/fast-forward/you-can-gamble-on-the-future-but-is-it-legal/71135/
Learning about prediction markets was odd. To me, the entire ordeal just seemed like gambling. I mean, we even used betting on horses as our real-world example to try to explain the concept. It seems like it’s just betting money on with only a certain probability of occurring, and then just waiting and hoping that it does occur. With that definition, it’s no wonder that many people also are confused about the difference between prediction markets and straight-up gambling. Even the federal government considers some of websites hosting these prediction markets just as another form of online gambling.
With that said, are prediction markets just gambling. To be sure, there’s some difference between betting on roulette or a slot machine and putting money down on which candidate will earn a nomination or an election. However, any way that you try to justify that only comes off like some addict justifying his need to gamble. It’s not just chance, you know for sure what the results are going to be. Or you have a system. In the end, prediction markets may be nothing more than just educated gambling, but they do still serve their purpose of being good predictors of actual events.