Despite the continued emergence of prediction markets across the American marketplace, U.S. consumers appear hesitant to put their full faith in the emerging sector.
Key Takeaways
- A new survey has found 81% of Americans view prediction market sports betting as no different from traditional gambling.
- Concerns about the exposure of underage and young individuals to prediction markets appear to be persistent.
- The findings also show that consumers highly favor prediction markets facing the same regulations as sportsbooks, in contrast to existing regulations.
A new poll from Gambling is Not Investing, and conducted by Morning Consult, has found that upwards of four out of five Americans view sports betting on prediction markets as no different from gambling.
“This polling confirms that unabated sports gambling on prediction markets is a growing concern across America,” said Mick Mulvaney, executive director of the Gambling is Not Investing coalition. “Prediction markets are trying to disguise their sports betting products as a financial investment, misleading Americans and dodging consumer safeguards, like age requirements.”
In addition, the poll, conducted among a nationally representative sample of more than 15,000 U.S. adults, per the report, found that more than three-quarters of Americans are concerned that younger individuals could be exposed to “gambling-related harms.”
Notably, while sportsbooks require users to be at least 21 years old in the majority of states to bet on sports, prediction markets are governed by the Commodity Futures Trading Commission (CFTC), meaning that users are only required to be 18 years old.
Enjoying Covers content? Add us as a preferred source on your Google account“Let’s face it, if it quacks like a duck, it’s sports betting,” Mulvaney quipped via release.
Findings show negative sentiment towards prediction platforms
In addition to the findings showing concern among Americans polled, the survey also appears to have unveiled a growing negative sentiment towards the continued exposure that prediction markets continue to garner across social media and beyond.
Upwards of 81% of Americans surveyed by the group were found to believe that prediction market platforms should comply with state gaming regulations. Those would include age-related restrictions, as well as taxation regulations and problem gambling safeguards.
That’s despite the current administration making recent headlines in prediction market news, with its continued acceptance and cooperation with various prediction markets and prediction market leaders.
As recently as February, the CFTC formed a 35-member advisory committee with several significant players in the prediction market space, a further bid of support for marketplace powerhouses like Kalshi and Polymarket.
“Today marks an important and energizing moment at the CFTC as the Innovation Advisory Committee takes shape,” CFTC chairman Michael Selig said in February. “The IAC’s work will help ensure the CFTC’s decisions reflect market realities so the agency can future-proof its markets and develop clear rules of the road for the Golden Age of American Financial Markets.”
