Prediction market platforms quietly establish internal market-making teams, raising concerns about neutrality.

[BitPush] Recently, there’s word that a certain prediction market platform is quietly expanding its internal market-making team. According to insiders, this New York-based startup has already spoken with several traders, including some veterans from the sports betting industry. What’s interesting is that their plans might put the platform in direct opposition to its own users.

This move is actually quite subtle. It’s worth noting that their old rival was previously criticized for similar practices. That competitor long ago set up a department called “Trading” specifically to make markets on their own exchange. To put it bluntly, when customers place bets, the platform itself acts as the house, taking the other side.

Executives at the platform claim this is to increase liquidity and improve the user experience. But there’s plenty of criticism—after all, isn’t this just the same model as traditional bookmakers? The conflict of interest is obvious. Just last month, there was a class action lawsuit alleging that the odds set by that platform were clearly designed to take advantage of customers.

Both of these platforms have grown rapidly in recent months. They’ve received federal regulatory approval in the US, allowing them to legally operate prediction markets for sports events and election outcomes. They’ve always tried to promote themselves as neutral platforms, distinguishing themselves from traditional bookies who profit off users’ losses. But now, it seems those lines are becoming increasingly blurred.

Interestingly, the platform now planning to build a market-making team previously had to pay a $1.4 million fine before re-entering the US market, after being kicked out for several years due to violations. Ultimately, the prediction market business relies on market makers—someone needs to be willing to take those unpopular bets and match buyers and sellers for “yes” or “no” contracts.

But if this new move actually goes ahead, it’s likely to spark another round of debate about platform neutrality. After all, what users care about most is whether the game is truly fair.