The standard argument for prediction markets does not include any kind of fairness in gambling. Rather, the point is precisely to surface insider or otherwise well-founded knowledge of the real odds so they can be available to anyone who wishes to look at the price.
(And I do not see how this first-order viewpoint is problematic, precisely. It’s the second-order consequences of people making the currently-considered-unlikely decision in order to cash in on a bet that I have an issue with.)
(And I do not see how this first-order viewpoint is problematic, precisely. It’s the second-order consequences of people making the currently-considered-unlikely decision in order to cash in on a bet that I have an issue with.)