Better Markets Director Dubs Kalshi, Polymarket Unregulated Gambling Sites
Better Markets director Benjamin Schiffrin argues that platforms like Kalshi and Polymarket are unregulated casinos disguised as prediction markets.Summary
Benjamin Schiffrin, director of securities policy at Better Markets, has labeled prediction market platforms Kalshi and Polymarket as “unregulated gambling platforms that function like casinos.” He contends these platforms exploit the term “prediction markets” to bypass gambling regulations designed to protect consumers and prevent illicit activities. Schiffrin argues that, contrary to their claims, these markets don't reliably predict the future and are susceptible to insider trading, giving those with privileged information an unfair advantage. He criticizes the Commodities Futures Trading Commission (CFTC) for lacking the capacity to effectively regulate these platforms, citing recent court rulings that have deemed them indistinguishable from gambling, such as a recent order in Massachusetts halting Kalshi’s sports event contracts. Schiffrin urges policymakers to recognize these platforms as casinos and regulate them accordingly to safeguard the public.
(Source：Gamblingnews)