Did you know that some of your students can place a bet on when traffic at the Strait of Hormuz will return to normal, or on whether the U.S. government confirms the existence of alien life? Prediction markets are regulated as financial exchanges rather than sportsbooks, so the minimum age on Kalshi is 18 rather than the 21 most states require for a betting app. Kalshi is now valued at more than $20 billion, and its ads are hard to miss.

In the Wall Street Journal video, Inside the Multibillion-Dollar Business of Betting on Everything, reporters break down how these contracts work, how platforms like Kalshi and Polymarket make money, and why their rapid growth has triggered a legal battle that could reach the Supreme Court. It also puts a number on who actually comes out ahead: a Journal analysis of 1.6 million Polymarket accounts found that about one-tenth of one percent of accounts take the majority of the winnings.

Click these links to access the video, student guide, and answer key

Wall Street Journal Video |  NGPF Student Reading Guide + Answer Key 

Video Length: 7:43

Discussion Questions

Use these to spark conversation after students read:

1. Most people who use prediction markets lose money, and a tiny group takes almost all the winnings. Why do you think people keep using these platforms anyway?
2. Should the same rules that apply to sports betting apps apply to prediction markets? Or are they different enough to deserve their own set of rules?

This reading pairs well with NGPF's Gambling and Sports Betting Unit.

This resource was created through NGPF's partnership with Dow Jones, bringing high quality financial journalism into personal finance classrooms across the country for free.

Every WSJ Wednesday, NGPF will highlight a classroom-ready article, video, or data crunch resource from the Wall Street Journal, MarketWatch, or Barron's, including a student guide, discussion questions, and an answer key.

About the Author

Yonathan Tadesse

Yonathan is a Dallas-based Curriculum Designer at NGPF with 12 years of experience as a high school math, college transition, and financial literacy teacher. An award-winning educator, he has a track record of launching innovative programs at the high school level that expand access and opportunity for students. He is a graduate of Emory University and is passionate about advancing financial education for all students. Outside of work, Yonathan loves spending time with his wife and two kids, working out, playing chess and poker, and learning new things.

More posts by Yonathan