While the game-ability of prediction markets is a major concern, I believe that the potential of prediction markets to further exacerbate inequalities may be a greater threat. It is important to keep in mind that while markets optimize for total value, it doesn't guarantee that it will optimize for things we as individuals want.<p>Free markets tend to lead to a positive feedback loop. Someone who has a lot of money will be able to predict the market better than someone who has less. Their advantage generates more wealth which helps them to predict the market better. Wealth generates more wealth.<p>In theory, this is offset by the notion that the market is not a zero sum game. The person may be generating new, previously unavailable, wealth. But while stock performance is tied to the success of a company (which can generate new wealth), prediction markets are tied to transient questions (where intrinsic value diminishes the closer you get to expiry). In this sense, how "predictions" might generate "new value" is unclear.