They're not going to get rid of them, they're just going to drive them underground, which will make them impossible to regulate, which will make using them less safe. I don't participate in prediction markets, but I would bet everything I own on this outcome.
Making using them less safe means that certain kinds of better are less likely to use them, which may be a purpose of this legislation.
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That's already what it is. They are an underground gambling site pretending that they're not doing things that they literally do by calling it something else. They're like a drug dealer who thinks they're slick by calling their drugs "research chemicals".