Prediction Markets Face Backlash Over Iran-Related Bets and Insider Trading Concerns

Prediction market platforms Kalshi and Polymarket faced criticism after enabling bets on sensitive Iran-related events, including air strikes and regime changes. Kalshi's market on Ayatollah Khamenei's potential ousting sparked controversy over ethical concerns and settlement rules. Meanwhile, a Polymarket user reportedly earned over $500,000 betting on US attacks on Iran, raising fears of insider trading and calls for greater transparency. Both platforms defended their practices, emphasizing regulatory compliance and geopolitical relevance of such markets.