Disclosure first: I'm on the boards of two non-profit organizations, and previously served on the board of another one.
Because of that, I'm required by (US) law to sign an annual conflict-of-interest statement. I'm also required to recuse myself from any vote that would materially benefit myself. I'm required to do all kinds of other things, like exercise fiduciary responsibility and to ensure that we are in compliance with all federal and state laws and regulations, and so on. All of this exists because other people have done pretty much the opposite and have thus committed malfeasance, fraud, embezzlement, etc. So as tedious and repetitive as it is: I get it. It needs to exist. And I need to do my part.
But prediction markets give me a way completely bypass all of it, do whatever I want, and enrich myself at the expense of these organizations with no accountability.
Which I'm not doing, by the way, because my heart is in these organizations. And I hate the assholes at Kalshi and Polymarket, and I don't want their dirty money.
But other people are doing it: individuals, people in corporations, people in organizations, people in government. It's that last one that should get everybody's attention, because people in government tend to wield far more power than anybody else. (We can have a debate about billionaires and corporate executives vs. mayors and cabinet officials if you like, but when push comes to shove, the former don't have control of police or military forces...and when push does come to shove, that matters.) The existence of these markets means that anyone who wields enough power to make something notable happen or not happen can profit from it, perhaps profit a great deal.
Which is why there were bets (yes, they're bets, and yes, this is gambling) made on the Iran war: the bettors rigged the game. Either they were the people making the decisions or they were in the room with the people making the decisions; either way, this is horrifying.
The existence of these operations is incompatible with a functioning system of government. They are explicitly designed to manufacture corruption, as much as a hammer is designed to pound nails. And as new as they are, they're already doing it: they're profiting from damaging the machinery that keeps the country running. (And if you're going to observe that "running" is doing some work in that sentence: yes, I know. There are problems, there have always been problems, there always will be problems. But throwing a huge wrench in the machinery isn't going to fix those.)
These companies don't need to be regulated: they need to be shut down, and then criminally investigated.