The Neophytes Get Awfully Prudish About Prediction Markets

Episode 44 - The Neophytes Get Awfully Prudish About Prediction MarketsPrediction markets, like Polymarket and Kalshi, allow users to purchase shares in certain real-world outcomes; or, in human speak, to bet on stuff. Like, all sorts of stuff. For example, a US special operations soldier recently made over $400,000 betting on the removal from office of Venezuelan President Nicolas Maduro. The soldier is in a fair amount of trouble—he’s been indicted for unlawful use of confidential information for personal gain, theft of nonpublic government information, commodities fraud, and wire fraud—but his punishment, and the new frontiers of insider trading, are kind of beside the point. The point is that people—you, me, high schoolers, government employees, nuns probably—can place bets on stuff like the deaths of political leaders, the length of the war in Iran, the price of gas in a month, and all sorts of other strange stuff that has always been the subject of private bets, but never anything of this scale.As it turns out, we, the Neophytes, don’t like it. We’re not necessarily opposed to gambling, especially if it’s done with honor in the shadows with an offshore bookie probably in Thailand, but this brave new world where every sporting event is sponsored by a sportsbook and millions of people without fully developed prefrontal cortexes can lose money betting on the temperature in New York is not to our puritanical taste.But all of this raises legitimate questions: is there a valid use case for prediction markets? Do they provide something of real value? Or even if they don’t, to what degree should the government restrict them, if any?Anyway, please download the official Neophytes app to place a bet on the number of comments this episode generates.For more content and to subscribe to the Never Close the Inquiry newsletter, please visit neverclosetheinquiry.substack.com and follow on instagram @neverclosetheinquiry Please like, rate, comment, and subscribe! Get full access to Never Close the Inquiry at neverclosetheinquiry.substack.com/subscribe