Why prediction markets are becoming the new big thing

The world of prediction markets is heating up, and it's not just because of the money. This year, the U. S. has seen a massive jump in interest, thanks to a recent court decision that cleared the way for election betting. But what exactly are prediction markets? They're platforms where people can bet on the outcomes of events, from politics to sports, economics, and entertainment. Big players like Robinhood and Underdog are jumping in, seeing the potential for growth. But not everyone is convinced. Some critics argue that these markets are just online gambling in disguise. Still, the momentum is hard to ignore. Kalshi and Polymarket are two startups that have seen huge growth in 2025. Kalshi's valuation has more than doubled to $11 billion. The Coalition for Prediction Markets (CPM) is a new group formed by these companies to give the industry a stronger voice. The coalition has big plans. They want to work with the federal government to create a solid framework for prediction markets. They also aim to set national standards to prevent insider trading and protect consumers. Plus, they want to push back against state-level regulations that might stifle the industry. Sara Slane, head of corporate development at Kalshi and a member of the coalition, emphasized the importance of strong federal safeguards. She said, \"Prediction markets must operate with transparency and integrity to prevent corruption. \" More companies are expected to join the coalition soon. This is a rapidly evolving space, and it will be interesting to see how it shapes up in the coming years.