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Why prediction markets are a horse of a different color.

From Marketplace, I'm Nancy Marshall-Genzor in Washington.

Tomorrow is the Preakness Stakes, the second event in the Triple Crown.

Americans have been able to bet on horse racing longer than any other sport,

but interest has waned in the past couple decades.

Betting on racing is down by more than 50%.

You might think prediction markets would see this as fertile ground, but even though sports

betting on platforms like Kalshi and Polly Market is surging, they have not made inroads

in horse racing.

Marketplaces Caitlin Tan did some digging into why.

Pat Cummings remembers his favorite Preakness race.

Smarty Jones winning in 2004.

And they're off. Smarty Jones gets off to a good beginning.

I grew up in Philadelphia, and it was just such incredible because the Philadelphia horse

had won.

He's going to win by that colossal margin.

Here is Smarty Jones.

...