This is one example from a source I just happened to read this morning, which is otherwise pretty positive about the prediction markets.

> Beyond fears about bad actors attempting to distort the markets for profit, some political operatives say the sites rarely deliver political forecasts that are different from traditional polling.

> For instance, polls during Wisconsin's gubernatorial primary showed Democrat David Crowley lagging other candidates by wide margins. Kalshi similarly projected Crowley as a long-shot candidate — but Crowley landed a surprise win.

> "It appears that there really aren't any predictions here, they're just reacting belatedly to public information, like polls and news stories," said Eddie Vale, a Democratic strategist in Washington who worked on Crowley's campaign. "If it was just a fun entertainment tool for political junkies, fine, but to me, all of this is a marketing sheen for an online gambling operation."

https://www.npr.org/2026/08/28/nx-s1-5945290/fake-poll-merid...

So it's not really that they provide bad predictions, it's more that they don't offer anything new. Except, of course, in the case when someone is using insider information in an attempt to profit. All this while also having the downsides of skimming money off every transaction and encouraging gambling habits.