I Championed Prediction Markets. Look What They've Become

# Summary The author, who previously championed prediction markets as tools for aggregating useful economic information, expresses regret about their current misuse. Instead of improving decision-making in important areas, prediction markets like Kalshi and Polymarket are dominated by sports betting (roughly 90%), while also creating opportunities for insider trading—exemplified by a White House teleprompter operator who profited $100,000 betting on presidential statements. The author calls for serious regulatory debate to address asymmetric information problems and the potential for compulsive gambling harm, noting that well-funded industry players have disproportionate influence while vulnerable populations lack representation.