Vanguard chief Salim Ramji cautioned that prediction markets have turned into a form of financial exploitation. Speaking at the Economic Club of New York, he drew a sharp line between investing and gambling, naming platforms such as Kalshi and Polymarket as the main culprits. The CEO warned that engagement‑driven sites prioritize hype over outcomes.

Robinhood has already pulled back from some prediction markets amid concerns over market abuse and insider trading. The debate gained fresh urgency when France’s weather agency filed a police complaint after temperature gauge anomalies at Paris‑Charles de Gaulle airport, coinciding with a rise in bets on Polymarket. Earlier this year the FT noted unusually large, well‑timed wagers preceded the U.S. attack on Iran.

Ramji highlighted that roughly one‑third of Gen‑Z have either invested in or considered prediction markets. He argued that while casual play with ‘fun money’ is acceptable, many see these platforms as a quick route to financial security. Vanguard’s $12tn in assets under management underpins its push for disciplined, diversified long‑term portfolios.

Ramji called for AI‑driven education tools to help investors distinguish betting from prudent investing. He warned that blurred boundaries could erode confidence in the market. Vanguard’s comments signal a broader industry push to tighten oversight of betting platforms, potentially reshaping how regulators view and supervise these emerging markets.