Better Markets stated, "If the trading amounts to any one of these species of election or market manipulation, then it is also likely to artificially skew the pricing of contracts in a way that is divorced from election 'fundamentals,' thus creating volatility that will undoubtedly harm many smaller retail investors who have placed their own bets." This emphasizes the potential consequences of allowing election gambling contracts to trade.
In its argument against Kalshi's election markets, Better Markets emphasized, "Allowing election gambling contracts to trade threatens to undermine election integrity, harm countless investors, and burden the CFTC with an inappropriate duty to police elections," highlighting the risks associated with political prediction markets.
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