Comment Re:What about being in a free country (Score 5, Interesting) 49
The problem here isn't scams and grift. It's that by growing the number of bets by orders of magnitude, you grow the number of insiders with insider info by orders of magnitude. Which creates perverse incentives across your entire economy for people to profit off of their status, while simultaneously making it much harder to do so.
Say there's a bet on whether Russia will take the village of Mala Tokmachka by a certain date. Well, now every Russian commander on that front has an incentive to have family members / friends bet against it and then delay / undercut their ability to wage incentives, while every soldier also has the incentive to do so and then do everything they can to spoil the offensive.
Or say the US is planning a major offensive in Iran, and various insiders are betting *on* an imminent attack. Well, Iran can feed Polymarket data into their intel assessments as one factor to help determine when the US will invade in order to maximize their readiness. OR, Iranian intel services could track down US officials / military officers who are making these bets based on insider info and blackmail them in order to get them to cooperate.
Every single aspect of society that gets bet on gets subtly undercut by the existence of these bets. It's one thing to have bets be placed on sports, an action that by definition is entertainment, something that doesn't actually matter. But it's an entirely different thing to have bets on virtually everything in our world. It's already been a problem with stock trading, but sites like Polymarket make it so, so much worse.