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Learn prediction markets

Plain-English guides to how prediction markets work — what event contracts are, how to read prices as probabilities, where they are legal, and how to choose a platform.

Getting started

What Is a Prediction Market? A Beginner’s Guide to How Event Trading Works

A plain-English guide to prediction markets: what event contracts are, how prices work as probabilities, and how they differ from sports betting.

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Getting started

How Do Prediction Markets Work?

Markets match buyers and sellers of yes/no event contracts. Here is the full cycle, from picking a question to settlement.

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Getting started

How to Buy Your First Prediction Market Contract

Six beginner steps to placing your first trade — from opening a regulated account to using limit orders in thin markets.

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Getting started

How to Read Yes/No Contracts on Prediction Markets

Yes wins if the event happens, No if it doesn't — but the rules and settlement source decide who actually gets paid.

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Prices & odds

How Prediction Market Odds Work

In prediction markets the odds are just the price. A 70-cent contract means roughly a 70% chance — no American odds to decode.

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Prices & odds

How Prediction Market Prices Become Probabilities

Because each contract pays a fixed $1, the price reads straight across as an implied probability. Here is why, and the caveats.

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Prices & odds

What Is Liquidity in Prediction Markets?

Liquidity is how easily you can trade without moving the price. It quietly decides both your profit and your risk.

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Prices & odds

How Prediction Markets Resolve Winning Contracts

Markets settle on written rules and an official source. The headline doesn't pay you — the named source does.

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Strategy

Can You Make Money on Prediction Markets?

Yes, but they are risk markets, not passive income. You profit by buying below true probability or selling above fair value.

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Strategy

Can You Sell Prediction Market Contracts Before They Expire?

In most markets you can exit before the event ends — if there's a buyer. How early selling works and why liquidity matters.

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Strategy

Common Prediction Market Mistakes Beginners Make

The biggest mistake is buying on opinion instead of price. Here are the usual traps and a habit that fixes most of them.

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Strategy

Can Prediction Markets Be Manipulated?

Yes — especially in thin markets or with insider information. How manipulation works and how to protect yourself.

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Comparisons

Prediction Markets vs Sports Betting

They look alike on a game result, but one is an exchange and one is a house. The structural and legal differences explained.

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Comparisons

Kalshi vs Polymarket: Which Should You Use?

Kalshi is the US-regulated, dollar-based exchange; Polymarket is the crypto-native, deepest-liquidity one. How to choose.

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Comparisons

Prediction Markets vs Options Trading

Both price the future, but options track an asset while event contracts pay $1 or $0 on a defined outcome.

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Comparisons

Prediction Markets vs Stock Trading

Stocks are open-ended ownership; prediction contracts are a fixed question with an expiry. When each one makes sense.

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Comparisons

Prediction Markets vs Betting Exchanges

Cousins that share peer-to-peer pricing but live in different regulatory worlds. Why the legal label changes everything.

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Legality & tax

Are Prediction Markets Legal in the US?

Regulated event-contract exchanges may operate legally, but not every market type is legal everywhere. The current picture.

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Legality & tax

Prediction Market Taxes Explained

Assume your profits are taxable, keep clean records, and ask a professional. How event contracts may differ from sportsbook winnings.

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Platforms

Apps Like Kalshi and Polymarket: The Best Alternatives (2026)

Blocked in your state, done with crypto, or want a real bonus? Eight strong Kalshi and Polymarket alternatives, ranked.

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Platforms

The Best Prediction Market Apps for Sports Bettors (2026)

No vig, no house setting your odds, cash-out before the whistle, and legal access in no-sportsbook states. The best sports apps, ranked.

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