Automated Traders Dominate Prediction Markets

A tiny number of highly active, mostly automated accounts capture the lion’s share of profits on crypto prediction markets, leaving casual users losing small amounts similar to sports bettors. That dominance makes these markets function more like pro vs. retail gambling venues than broadly democratized information markets. — If prediction markets are dominated by automated pros and insiders, regulators and platform designers must treat them as financialized gambling venues with consumer‑protection and market‑integrity implications.