Kalshi and Other Prediction Markets Should Scare Sports Leagues
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Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000A lack of regulation can leave bettors vulnerable to manipulation.Adhi Rajaprabhakaran began trading in prediction markets in summer 2020. Then a couple of years out of college, he started with bets on whether Joe Biden or Donald Trump would win that year’s presidential election, and on which states each would carry, buying yes-or-no contracts on Polymarket and PredictIt. By early 2021, Rajaprabhakaran was making his living as a trader and was busy trying to figure out when Jennifer Granholm would be sworn in as US secretary of energy.As part of that effort, he called an energy lobbyist. Two well-placed Senate staffers, the lobbyist told him, had said Granholm would be confirmed before March 1. Rajaprabhakaran made his bets accordingly and won several thousand dollars when she was sworn in on Feb. 25. “I was super proud of it, and I bragged about it,” Rajaprabhakaran says of his detective work. Other traders, he says, congratulated him.