Prediction markets — Exploring a framework for effective regulation

We are used to viewing the gambling market through the lens of traditional forms of gambling — casinos, slot machines, betting, and lotteries. Each of these segments has both offline and online components, which are subject to regulation by the relevant legislation and supervisory authorities.

However, technological development is giving rise to new forms of gambling that often come to regulators’ attention only after they have effectively evolved into a separate gray market. One such emerging area is the prediction market, platforms where users can place bets on the likelihood of various social and political events. Read more