Prediction markets face potential product-liability claims over platform design
Prediction-market operators could face product-liability lawsuits if courts find that platform design caused harm and operators failed to address known risks, according to legal experts quoted in the report. The potential claims include negligent design, failure to warn and consumer-protection violations; plaintiffs would need to show measurable harm or inadequate safeguards. The report cites estimates of 2.5 million US adults with severe gambling problems and a further 5 million to 8 million with mild or moderate harm.
Operators may face consumer-protection and product-liability exposure over design, safeguards and risks to younger users.