Prof G Markets: ByteDance’s Blowout Profit, Kalshi & Events Betting, and Dude Perfect’s Big Deal

Event Contracts

Event contracts are gaining traction as a novel asset class, allowing individuals to bet on the outcomes of various events, from political decisions to weather forecasts. Ed Mylett highlights Kalshi, a platform that has secured regulatory approval and partnered with Susquehanna, a major market maker, to enhance liquidity in this emerging market 1. Scott Galloway supports the idea of allowing people to engage in such speculative activities, viewing it as a form of entertainment rather than investment.

People want to bet on stuff. 85% of the people who do this are going to be fine and enjoy it. This is not investing.

--- Scott Galloway

He emphasizes the distinction between investing and gambling, noting that the latter involves a zero-sum game where someone wins and someone loses 1.

   

Social Implications

The rise of gambling opportunities, particularly through apps, poses significant societal risks, especially for young men. Scott Galloway expresses concern over the potential for addiction and financial ruin, predicting a rise in male suicides linked to gambling 2. He argues for the importance of educating young people about the risks and their own neurochemistry to mitigate these dangers.

You are going to start to see articles about another reason why male suicide is skyrocketing in the US.

--- Scott Galloway

Galloway also criticizes the portrayal of gambling as a form of investment, likening it to platforms like Robinhood that blur the lines between speculation and investing 3.