Michael Burry, the investor best known for predicting the 2008 US housing market collapse, has warned that prediction markets are 'gambling no matter what anyone calls it', arguing that platforms such as Kalshi are taking advantage of a regulatory loophole that allows them to operate across the United States.
Prediction markets have continued to expand, with platforms offering contracts tied to elections, inflation, interest-rate decisions, employment data and other real-world events. The sector has also drawn increasing legal scrutiny as states and federal authorities dispute whether event contracts should be regulated as financial products or gambling.
