Why prediction markets are becoming the new big thing

The world of prediction markets is heating up, and it's not just because of the money. This year, the U.S. has seen a massive jump in interest, thanks to a recent court decision that cleared the way for election betting.

What Are Prediction Markets?

They're platforms where people can bet on the outcomes of events, from politics to sports, economics, and entertainment.

Big Players Jumping In

• Robinhood
• Underdog

These companies see the potential for growth. However, not everyone is convinced. Some critics argue that these markets are just online gambling in disguise.

Startups Seeing Huge Growth

• Kalshi: Valuation has more than doubled to $11 billion.
• Polymarket: Also experiencing significant growth.

The Coalition for Prediction Markets (CPM)

A new group formed by these companies to give the industry a stronger voice.

Goals of the Coalition

• Work with the federal government to create a solid framework.
• Set national standards to prevent insider trading and protect consumers.
• Push back against state-level regulations that might stifle the industry.

Sara Slane's Emphasis on Transparency

"Prediction markets must operate with transparency and integrity to prevent corruption."

Future Outlook

More companies are expected to join the coalition soon. This is a rapidly evolving space, and it will be interesting to see how it shapes up in the coming years.