Prediction Markets Go Mainstream: Profit Potential Meets Risk in Event Bets

A Seeking Alpha piece explains that prediction markets—event-based contracts offered by platforms like Kalshi and Polymarket—are entering mainstream finance as major brokerages (Robinhood, IBKR, Goldman Sachs, CME, Schwab) explore them. The development promises new revenue and widening access but also blurs lines between hedging and gambling, raising questions about risk controls, market behavior, and how these bets will impact traditional investing and brokerage incentives.