New forms of online gambling and speculative betting continue to evolve quickly. One growing trend gaining national attention is the rise of “prediction markets,” or platforms where users can bet money on the outcomes of future events.

 These markets may appear similar to investing or forecasting, but many experts warn that they can function much like gambling, particularly when money is wagered on uncertain outcomes with the potential for financial gain or loss.

Recently, major sports betting companies have begun introducing prediction-style features into their platforms, such as FanDuel Predicts.

Why Prediction Markets Raise Concerns

Prediction markets allow users to bet on future outcomes in sports, politics, entertainment, economic trends, and other real-world events. While these platforms are often promoted as entertainment, forecasting, or trading tools, experts note that they share several characteristics commonly associated with gambling behaviors.

 One major concern is that some prediction market platforms may operate under different regulatory frameworks. In some cases, they may not be required to follow the same oversight standards related to consumer protections, gambling safeguards, reporting requirements, or responsible gaming measures. In Illinois, a 21 years and older age restriction for sports prediction markets will go into effect starting July 1, 2026, while these types of activities began entering the mainstream consciousness as early as 2022. 

 These gaps can create confusion for users, especially younger adults, who may not recognize the risks involved or believe without explicit legislation or laws in place that the risk does not exist

Why Parents and Caregivers Should Pay Attention

Many prediction market products are designed with sleek mobile interfaces and heavy social media promotion, making them especially appealing to younger audiences. Teens and young adults may not recognize these activities as gambling because they are often framed as “trading,” “predicting,” or “investing.”

 Caregivers can help by:

• Monitoring conversations around sports betting apps, trading apps, and prediction platforms
• Talking openly about financial risk and gambling-related harms
• Watching for changes in mood, secrecy, spending habits, or excessive phone use
• Setting clear expectations around online gambling and betting activities

Support is Available

While prediction markets and other forms of online wagering continue to expand, so do prevention efforts, treatment options, and recovery resources. Choosing not to engage with prediction market platforms can help reduce exposure to financial and behavioral risks, particularly for young adults and individuals already vulnerable to compulsive behaviors.

 At Nicasa Behavioral Health Services, we believe education, prevention, and early support can make a meaningful difference when it comes to problem gambling, substance use, and mental health concerns. If you or someone you love is struggling with problem gambling or prediction markets, support is available. Contact us today: https://nicasa.org/contact/.