Published by the Manhattan Institute, City Journal explores urban policy topics. Authors Jonathan D. Cohen and Isaac Rose-Berman highlight how Americans are deeply involved in prediction markets. They wager billions on various events, including elections, music album sales, and football games.
Despite the nature of these markets, they aren’t legally recognized as gambling. Both the markets themselves and federal regulators consider these platforms as investment avenues. The contracts offered are viewed as financial derivatives, not as bets.
Regulation could address significant issues within these markets, potentially providing better oversight and consumer protection.