A stock-market-style form of sports betting is sweeping the United States. Some of the numerous companies peddling the addictive product are using the new euphemism “responsible trading” to hook their customers.
So-called “prediction markets” are a form of federally “regulated” online sports gambling — at least for now, until the courts settle the legal issue. You could definitely argue that the federal government, here the Commodity Futures Trading Commission, isn’t doing any real regulation to protect consumers, but technically, these mobile sportsbooks have CFTC approval. Nearly 40 states regulate traditional sports betting.
What Is a Prediction Market?
Prediction markets facilitate yes-or-no, stock-market-style gambling on sports and countless other real-world events. Basically, you can buy and sell shares in an outcome.
It’s unclear whether the betting is peer-to-peer or house-banked covertly, depending on the platform. Don’t be fooled into thinking the product is human-versus-human with the platform taking a fee.
To exploit the federal loophole, the companies flooding the country with gambling dopamine don’t call the products gambling, but rather a form of trading.
Surveys have shown that about half of online sports bettors experience moderate to severe issues with their play. To ignore the gambling addiction crisis, the sportsbook dopamine dealers use PR messages like “responsible sports trading.”
Signs of a Sports ‘Trading’ Addiction
Because “trading” is a euphemism for gambling, the signs of a sports trading addiction are the same as those of an addiction to sports betting/gambling.
- Preoccupation with thoughts about sports gambling
- Need to sports gamble with increasing amounts to achieve the desired excitement
- Repeated unsuccessful efforts to control, cut back on, or stop sports gambling
- Restlessness or irritability when trying to cut down or stop sports gambling
- Using sports gambling to escape from problems, loneliness, anger, or stress
- After losing money on sports gambling, feeling the need to chase losses
- Lying to hide the extent of sports gambling
- Jeopardizing life opportunities or close relationships due to sports gambling
- Relying on others to help with money problems caused by sports gambling
These are the general signs. Specific nuances depend on the gambling product.
For instance, in sports “trading,” your intrusive thoughts might be related to compulsive checking of price fluctuations or to monitoring social media for breaking news. These thoughts could count as a preoccupation with gambling.
Do ‘Trade Responsibly’ Tools Work?
Depending on the “prediction market” gambling platform, some in-app and website features may be available related to self-imposed limits on your play. The features could be deliberately buried to be hard to find or they could be visible.
- Deposit limits
- Session limits
- Timeouts
- Self-exclusion
There is some evidence that these voluntary “tools” can help a small minority of people. Still, the research is damning if an operator suggests they are a robust solution to gambling harm.
Uptake is low, effects are often tiny or short-lived, and people at the highest risk can work around them. Ultimately, the tools place the onus on the user rather than the addictive product.
Voluntary tools are a joke at the population level, but there is evidence that mandating their use or requiring users to explicitly opt out could be effective. The CFTC is turning a blind eye to addiction.
Legal Reasons for ‘Trading’ Euphemism
To circumvent state gambling laws, prediction market sportsbooks must operate under federal law that does not classify their products as gambling.
Terms such as “contracts”, “swaps”, and “derivatives” are instead used to describe the “prediction” form of sports gambling. Don’t be fooled by the insidious legal jargon.
These are devastatingly harmful and addictive gambling products, fine-tuned to take your money over time, and the more you play.
What Are the Most Popular Prediction Markets?
The following prediction markets have launched or are poised to launch in the U.S.
- Kalshi
- Polymarket
- Crypto.com
- FanDuel Predicts
- DraftKings Predictions
- Fanatics Markets
- Robinhood
- Underdog Sports
- PrizePicks Predict
- Truth Predict
We recommend avoiding all of these products because they are addictive and can cause you severe financial harm. In a worst-case scenario, they can destroy your life and the lives of the people around you.
Don’t be fooled by messages related to responsible sports trading.
Discover more from GamblingHarm.org
Subscribe to get the latest posts sent to your email.
