New Delhi, March 1 -- The largely unregulated world of prediction markets is seeing a massive surge in activity. These platforms allow users to place direct bets on world events, including US elections and military strikes.

According to Bloomberg, users recently saw significant gains by betting on the timing of U.S. strikes in Iran. Trades on Polymarket reached $529 million, while Kalshi recorded $36 million in bets regarding a regime change in Iran following the death of Supreme Leader Ali Khamenei.

However, with only a digital wallet required and users able to remain anonymous, analysts have raised concerns about potential insider trading. One contract betting on 27 February, a day before the reported strike, generated over $25 millio...