(AsiaGameHub) –   Prediction markets often position themselves as superior alternatives to traditional sportsbooks. When questioned about regulatory oversight, these platforms typically maintain a consistent stance: they should be regulated by the CFTC because they function as financial instruments rather than sports betting venues.

AP Digs into Prediction Markets and How Gambling Addicts Respond to Them

However, an investigation by the Associated Press reveals a different perspective from those struggling with gambling addiction: they report experiencing the same psychological “high” whether they are “trading” on prediction platforms or “wagering” on sportsbooks.

The AP consulted Dr. Cynthia Grant, VP of Clinical at Birches Health, who confirmed that professionals are observing the same “cycle of anticipation, action, and reaction” recurring among users.

One individual, a soccer coach, shared that his gambling journey began at age 16. Lacking access to formal bookmakers, he and his peers initially bet against one another.

Upon turning 18, he began frequenting casinos and sportsbooks, but after suffering significant financial losses, he eventually migrated to prediction markets.

“I would be drowning in debt, receive a $2,000 paycheck on a Friday, and it would be completely gone by the weekend. I wouldn’t even have enough money for gas,” the 21-year-old told the outlet.

The man eventually sought help through Gamblers Anonymous, an organization that connects individuals struggling with gambling issues to the support and resources necessary to recover.

Another case involved an accountant who became addicted to sports betting following its legalization in New York. He eventually transitioned to prediction markets, specifically trading on Kalshi.

The accountant characterized prediction markets as “the same product, just rebranded.”

“It’s a dangerous loophole. How can they operate like this and claim they aren’t a sportsbook?” he questioned. While treatment professionals have not formally classified prediction markets in the same category as traditional sports betting—largely due to a lack of extensive research—the patterns are clear.

Experts like Jody Bechtold, CEO of The Better Institute, note familiar behaviors such as chasing losses, dishonesty, and secrecy. In response to the AP, Kalshi spokesperson Elisabeth Diana emphasized the company’s commitment to responsible trading initiatives.

More Evidence Needed to Gauge the Impact of Prediction Markets

Diana defended Kalshi by comparing it to casinos, asserting that the platform is “more transparent, fairer, and less predatory.”

Marlene Warner, CEO of the Massachusetts Council on Gaming and Health, expressed uncertainty regarding how to categorize prediction markets.

“Honestly, I don’t have enough information. There hasn’t been enough study on them, so I cannot definitively say whether the risk level is higher, lower, or equivalent,” she stated, noting that while she is concerned, her position lacks a foundation in concrete research.