Prediction Markets' Stock Bets Raise Regulatory Alarms

Prediction markets are becoming venues for wagering on US stocks like Tesla and Apple, with Polymarket traders betting over $220 million on roughly 31,000 equity-linked markets, according to Allium. Nearly 60% of these wagers target individual stock moves, raising concerns about investor protection and oversight. US law generally treats single-stock contracts as SEC-regulated swaps mostly restricted to professional investors.