Election-season trading on prediction markets (platforms for buying and selling event-outcome contracts) is surging, including around major races this fall, as states seek to regulate or outlaw the platforms as unlicensed casinos. Kalshi, Polymarket and similar markets let customers trade contracts typically priced from 1 to 99 cents on mayoral, gubernatorial and U.S. Senate contests. Election administrators worry that financial incentives, misinformation and attempts to manipulate market odds could further weaken public confidence in elections and democracy. The platforms argue that election trading is comparable to investors hedging against policy risks through stocks, bonds or commodities. Kalshi and Polymarket also cite insider-trading safeguards and research suggesting that market probabilities generally track outcomes. Courts are considering whether states can apply gambling laws to the platforms, while election officials are preparing public education campaigns and considering restrictions on election workers betting. The article highlights concerns that wealthy partisans or candidates could use favorable odds to influence voters, fundraising or endorsements, although market officials say liquid markets quickly correct manipulation. Courts are unlikely to resolve the disputes before the election, leaving potentially billions of dollars to be traded on congressional and gubernatorial outcomes.