That's a good start, and should be followed by banning everyone else from trading on them.

I agree in spirit, but really it should be the other way around, no? People aren't banned from using them, companies are banned from offering them. I do not want to see a future in which people get their doors knocked down because they're under suspicion of using a gambling app.

Why though. This is a dead serious question, what is the difference in using financial derivatives and prediction markets. Both are a transaction between parties that is influenced by some other underlying event. Why is it ok for the event to be a stock price, but not ok for it to be a sports match?