The American public is widely divided on whether these internet transactions qualify as financial investing or gambling, according to recent polls, as prediction markets gain prominence in the gaming and finance industries.

The Harris Poll, which was commissioned by the National Council on Problem Gambling (NCPG), polled over 2,000 American people to find out what they thought of prediction markets.

According to the poll's findings, nearly half of Americans (45%) believe that prediction markets are similar to gambling. Prediction markets are most similar to investing, according to less than three out of ten respondents (27%).

“These findings show that the public recognizes prediction markets as platforms that can carry many of the same risks associated with gambling,” said Heather Maurer, executive director at the NCPG.

The NCPG has been the only national nonprofit organization committed to reducing the financial, societal, and human consequences of problem gambling since 1972. The organization's headquarters are in Washington, DC.

 

Protections for Consumers Are Required

According to the Harris Poll, Americans are overwhelmingly in favor of requiring prediction markets to adopt consumer protections akin to those imposed on online gambling goods. According to the survey, 84% of respondents are in favor of treating prediction markets similarly to online sportsbooks in terms of consumer rights.

“Regardless of how these products are classified legally, Americans clearly believe that if financial risk and repeated participation are involved, meaningful consumer protections should follow,” Maurer said.

"As these platforms continue to expand, there is a growing need for public awareness, education, and access to support resources,” Maurer added. “As retail participation in financial markets continues to evolve, NCPG is committed to ensuring consumer education and harm prevention efforts evolve alongside them.”

The NCPG is pushing for initiatives to improve consumer education, research into the growing risks of prediction markets in terms of trading addiction, and platform compliance with the nonprofit's Responsible Play program. 

 

Survey: Probable for Forecasting Market Addiction

A significant majority of respondents to The Harris Poll on prediction markets believed that trading on the exchanges carries a high risk of addiction.

When asked if "people can develop unhealthy or addictive behavior related to prediction market platforms," 85% of respondents said "yes." Merely 56% of respondents claimed to know "where to go for help if I or someone I know developed a problem related to the use of prediction markets."

About 82% of respondents indicated that they would be in favor of requiring prediction markets to provide "responsible gaming or consumer protection tools," such as deposit caps, cooling-off times, and easily accessible assistance for gambling-related issues.