Prediction markets still have a long way to go. They require more time to mature in order to prove themselves to the market and regulators, demonstrating their distinct market attributes apart from gambling.

Prediction markets, gambling, and binary options may appear similar on the surface—"betting on an outcome and settling based on the result"—but they differ fundamentally in their processes and how they define outcomes.
Prediction markets involve discovering events, estimating probabilities, aggregating information, and providing references for real-world decision-makers. They can be cross-verified and dialectically analyzed.
Gambling involves betting on wins or losses, betting on results. While probabilities can be calculated and information can be aggregated, most gambling is limited to outcomes.
Binary options, like prediction markets, are based on binary results, but they do not focus on information aggregation or analysis. Instead, they tend to be short-term price battles, making them more similar to gambling on outcomes.
Currently, many people in prediction markets lack the ability to discover information, aggregate, interpret, and organize it effectively. They either rely on luck to choose yes or no or follow the crowd.
Therefore, on the surface, prediction markets are often seen as gambling or binary options. To prove their value, prediction markets still have a long way to go.
The accelerated application of AI and the emergence of AI agents will speed up this process, compensating for most people's inability to discover, aggregate, interpret information, and make effective judgments. It will also drastically shorten the time required for the entire process.