The explosion of prediction markets reminds me of John Carpenter’s 1988 horror classic They Live, in which society is secretly brainwashed by a ruling cabal of ghouls.

Despite its bleak premise, the film is a satirical indictment of capitalism and consumer society, specifically the excesses of the so-called Reagan 1980s. The film is a masterpiece to this day.

The film’s protagonist, played brilliantly by the late professional wrestler “Rowdy” Roddy Piper, stumbles upon a pair of sunglasses that let him see through economic and political propaganda. In a famous scene, he reads the true meaning behind advertising on Los Angeles billboards.

I often write about so-called prediction markets, a form of federally-backed gambling on current events. Proponents claim prediction markets are a source of truth in an increasingly fragmented and chaotic world. They say that prediction markets tune out the noise, crowdsourcing public opinion to give us the closest thing yet to a crystal ball.

Some news media giants, such as CNN, are going all in on prediction-style betting.

To become Nostradamus gambling apps, these platforms need liquidity and large user bases. Otherwise, their forecasting accuracy is a pipe dream. Most of these users will lose money “predicting” — despite their best efforts to do research and make informed bets. Operators will get rich siphoning off user money through fees.

“Everyone is an expert on something” is a slogan of the current market leader in the space, valued at $22 billion.

In theory, this all might sound relatively tolerable. However, these platforms are fueled by habit-forming design features. It’s indisputable that a significant number of users will suffer mental health and financial consequences.

In a truly ghastly example of how everyday people might purportedly benefit from prediction markets, the sector’s regulator mentioned hedging against medical bills. In reality, prediction markets will primarily benefit the ghouls.

Many people are already addicted to doomscrolling, and prediction markets are premised on society collapsing further into mindless content consumption. What good is a crystal ball if our attention spans are shot?

Ultimately, Carpenter’s They Live isn’t an optimistic movie (no spoilers). It’s equally hard to see the prediction market industry truly contested anytime soon. What can be done?

I believe every conversation matters. If you have a chance, tell people around you about how prediction markets are parasitic to society and should be avoided. They can’t begin to sniff their ambitions as “sources of truth” unless enough people use them. You can help slow down their user base growth with a conversation each day.

Fortunately, we aren’t in need of magical sunglasses to see through the deception.