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Kalshi and Polymarket Bets On Clinical Trials Criticized As 'Ghastly'

Prediction markets, where users bet on future events, are seeing billions traded weekly, raising ethical concerns as they expand into new areas like clinical trials. Kalshi, a prediction market platform, claims these bets can offer insights into drug approval and trial outcomes. They argue that profiting from failure is also prevalent in the stock market, but prediction markets provide more useful data to researchers. However, drug trial researchers are highly skeptical of this new development. David Tsai, who runs clinical trials, fears that prediction markets undermine trust and integrity in biotechnology. He worries that individuals involved in trials might be incentivized to tamper with results for financial gain. For instance, a pharmacist could alter drug administration to influence trial outcomes based on their bets. Nicholas Zaorsky, a professor at the Mayo Clinic, agrees that prediction markets can interfere with drug development by creating financial incentives that risk trial integrity. Joshua Pederson, whose child is in a clinical trial, finds the idea of betting on a drug's failure to earn money to be abhorrent. Kalshi counters that these markets can help patients find promising medical breakthroughs and clinical trials. They believe transparent data on trial probabilities can empower patients.