Equities are underlying collateral. Prediction markets are literally just betting on an outcome, no underlying asset exists.

Prediction Markets act the same way as Gambling Exchange - the assets are denominated as both sides of the book minus the spread.

petcat 2 hours ago | parent | prev | next [-]

What collateral is underlying the massive, state-sponsored, Spanish lottery ticket and scratch off racket?

	▲	JCTheDenthog 2 hours ago \| parent \| next [-]
		I don't think you'd find anyone arguing that the lottery isn't gambling, so I'm not sure what argument you're trying to make here.
	▲	contubernio an hour ago \| parent \| prev [-]
		A casino is by definition a house that takes rake and is not the government or one of its subsidiaries ...

delichon 3 hours ago | parent | prev [-]

Collateral is not uncommon in gambling (e.g. pink slips). That does not seem to distinguish gambling from speculating.

	▲	bena 2 hours ago \| parent [-]
		That's not collateral, that's the thing being wagered.