Published in City Journal, the Manhattan Institute addresses urban policy challenges. Authors Jonathan D. Cohen and Isaac Rose-Berman explore significant trends in prediction markets.
American citizens are investing billions in prediction markets. These platforms enable users to predict outcomes on a diverse range of topics. Events include elections, music album sales, and sports games.
Despite appearances, participants claim these actions are not betting. Federal regulators classify these prediction markets as investment platforms. The associated event contracts fall under the category of financial derivatives.