Prediction Markets Labeled Gambling

Lawmakers and regulators are increasingly characterizing online prediction markets as gambling rather than legitimate information markets, prompting threats of tighter legal restrictions. Companies running these markets face a choice: accept gambling regulation, restructure products, or make an explicit, public case for their informational value to avoid policy backlash. — If prediction markets are recast legally as gambling, it will shrink venues for publicly tradable forecasts, increase legal risk for platforms, and alter how private signals inform markets and politics.