The Toronto Star quotes Werner Antweiler, professor at the UBC Sauder School of Business, warning that “pushing this onto the retail market is asking for trouble,” and comparing prediction trading to gambling.
Based on his not‑for‑profit prediction market experiment, he told the Star that unsophisticated investors are drawn to high‑risk positions and more prone to losing money, and that these markets tend to attract younger, male investors.
Jean‑Paul Bureaud, executive director of FAIR Canada, told the Star he is concerned that if forecast contracts become a common feature on an investing platform, retail participation could grow faster than effective safeguards, raising the risk of significant losses.
In his view, “for most retail investors, prediction markets look and behave much more like online gambling — fast, speculative, and event‑driven,” and “calling them ‘markets’ doesn’t change the risk or make them appropriate for everyday investors.”
Meanwhile, the broader sector is already under scrutiny for insider‑trading‑style concerns.