Trump Softens Criticism of Prediction Markets

U.S. President Donald Trump softened his criticism of prediction markets on Saturday in Florida, acknowledging support from knowledgeable individuals and warning that the United States risks falling behind other nations adopting the platforms.

Speaking to reporters, Trump said, "I know some people that are very smart. They like it," adding, "A lot of other countries are doing it, and when the other countries do it, we get left out in the cold if we don't do it." The comments marked a departure from his remarks two days earlier at the White House, where he expressed discomfort with the sector. "I was never much in favor of them," Trump said Thursday, describing the global environment as "somewhat of a casino" and stating, "I don't like it conceptually, but it is what it is."

Prediction markets enable users to trade contracts on the outcomes of future events, including elections, economic indicators, sports and geopolitics. Platforms such as Polymarket, a blockchain-based site, and Kalshi, a regulated exchange, have seen sharp growth. Data from Token Terminal showed combined trading volume on the two platforms reached $23.6 billion in March, a monthly record amid heightened...