Prediction Markets Are Worrying Wealth Managers

Core Insights - The rise of prediction-market platforms like Kalshi and Polymarket is attracting significant interest from younger retail investors, causing concern within the financial industry [2][5] - These platforms allow users to wager on the outcomes of public events, which some analysts view as part of a broader trend of gamification in finance [3][6] Industry Overview - Prediction markets are regulated by the Commodity Futures Trading Commission, leading to a complex relationship with state gaming boards, particularly as platforms expand into sports betting [4] - The lack of regulation has allowed platforms to grow rapidly, with some analysts noting that this could make future regulatory actions more challenging [5] Company Developments - Robinhood launched its prediction markets hub in March, achieving $100 million in annualized revenue faster than any of its other business lines [7] - eToro plans to introduce prediction markets next year, further expanding its offerings to its 40 million global users [7]