A bit tangential to the main thrust of this post, but I have been wondering lately about some the regulatory aspects around prediction markets. Recently there was the scandal of a soldier who allegedly made $400,000 from insider information about the Maduro raid. There is particular interest in the US on banning sports betting, which is seen (accurately) as another form of gambling. Minnesota might ban prediction markets entirely.
Stepping back from the merits of this specific proposal, I see it as a part of a troubling broader anti-innovation trend. We have also seen various political factions (usually the same factions) find nothing but negativity in data centers, human spaceflight, and cryptocurrency and pursue whatever legislative avenues they can to restrict these things. At some point, a person has to identify the pattern.
As a “layperson” (I don’t put my own money into prediction markets, nor is my research specifically related to them), I do find prediction markets to be a helpful source of information in the way that commodity futures are a helpful source of information. But I dislike having to sift through a bunch of predictions on sports matches and short-term crypto movements. That, and my libertarian-ish fears about the heavy hand of government, make me reluctant to throw the baby out with the bathwater.
A bit tangential to the main thrust of this post, but I have been wondering lately about some the regulatory aspects around prediction markets. Recently there was the scandal of a soldier who allegedly made $400,000 from insider information about the Maduro raid. There is particular interest in the US on banning sports betting, which is seen (accurately) as another form of gambling. Minnesota might ban prediction markets entirely.
Stepping back from the merits of this specific proposal, I see it as a part of a troubling broader anti-innovation trend. We have also seen various political factions (usually the same factions) find nothing but negativity in data centers, human spaceflight, and cryptocurrency and pursue whatever legislative avenues they can to restrict these things. At some point, a person has to identify the pattern.
As a “layperson” (I don’t put my own money into prediction markets, nor is my research specifically related to them), I do find prediction markets to be a helpful source of information in the way that commodity futures are a helpful source of information. But I dislike having to sift through a bunch of predictions on sports matches and short-term crypto movements. That, and my libertarian-ish fears about the heavy hand of government, make me reluctant to throw the baby out with the bathwater.