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flag Prediction markets surged ahead of 2025 midterms after regulatory changes, sparking debate over their impact on democracy and fairness.

flag Prediction markets like Kalshi and Polymarket are seeing rapid growth ahead of the 2025 midterms, following the Trump administration’s removal of Biden-era restrictions that previously targeted such platforms. flag With increased regulatory approval and high-profile endorsements—including Donald Trump Jr. joining Kalshi—these apps are expanding, allowing users to bet on political and global events. flag While they claim to operate as peer-to-peer exchanges without taking opposing positions, critics argue that market makers like Susquehanna International Group function like casinos, manipulating odds and profiting from user losses. flag A federal class-action lawsuit challenges their practices, and experts warn of risks to democratic integrity and financial exploitation. flag Despite concerns, major firms like DraftKings and Robinhood are entering the space, signaling a broader trend toward financializing public opinion.

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