Updated
Updated · Psychology Today · Jun 14
Counselors Urged to Track $24 Billion Prediction-Market Boom as Addiction Risks Rise
Updated
Updated · Psychology Today · Jun 14

Counselors Urged to Track $24 Billion Prediction-Market Boom as Addiction Risks Rise

3 articles · Updated · Psychology Today · Jun 14

Summary

  • $24 billion in April trading on Kalshi and Polymarket has prompted new guidance that counselors learn how prediction markets work and screen clients for gambling-like harms.
  • Prediction markets let users trade yes-or-no contracts on future events, and their constant availability, real-time odds, incentives and push notifications may encourage continuous play and chasing losses.
  • The platforms sit in a disputed zone between investing and gambling: they are regulated by the CFTC and framed as trading, but critics say they still involve risking value for a larger payoff.
  • Counselors are advised to watch for DSM-5 gambling-disorder signs such as loss of control, preoccupation, failed attempts to stop and financial fallout, then use tools including CBT, motivational interviewing and peer support referrals.

Insights

Labeled 'investing' but acting like gambling, are these new trading apps creating a hidden addiction crisis?
As regulators clash over their legality, are prediction markets the future of finance or a public health crisis?
With bots capturing most profits, are prediction markets a sophisticated financial tool or a rigged game for casual users?