Updated
Updated · Psychology Today · Jun 13
Kalshi, Polymarket Trading Jumps to $24 Billion as Counselors Warn of Gambling Addiction Risks
Updated
Updated · Psychology Today · Jun 13

Kalshi, Polymarket Trading Jumps to $24 Billion as Counselors Warn of Gambling Addiction Risks

3 articles · Updated · Psychology Today · Jun 13

Summary

  • $24 billion in global trading on Kalshi and Polymarket by April, up from under $5 billion in late 2025, has intensified concern that prediction markets could widen gambling-related harm.
  • Counselors and researchers say the platforms mirror gambling because users risk money on binary event outcomes, with always-on access, real-time odds, push alerts and loss-chasing dynamics that can reinforce compulsive behavior.
  • The debate remains unsettled: the American Gaming Association calls some event contracts illegal sports betting, while platforms and firms such as Robinhood frame them as regulated investing under CFTC oversight.
  • Mental-health professionals are being urged to screen prediction-market users for gambling-disorder signs—including chasing losses, failed attempts to stop and financial fallout—as the products spread across fintech apps.

Insights

With states suing and addiction rising, will these multi-billion dollar markets be regulated out of existence?
Are prediction markets a new investment tool or just high-tech casinos rigged against the average user?
Can virtual reality therapy effectively combat the new wave of digital addictions these platforms are creating?