The popularity of prediction markets (for gambling on politics) is a new phenomenon in the United States, and who pays out when is not at all consistent. Why it matters: Prediction markets are suddenly at the center of political chatter,

Tuesday night's election returns were a shocker if you only watched CNN. But not if you'd looked at the betting all along.

Like its counterpart in Kalshi, Polymarket has seen a huge boost in activity for the upcoming election. The site itself is reporting that users have already placed over $3 billion in bets on the outcome of the Presidential race alone, with more expected in the hours leading up to Tuesday.

Nearly $5 billion in bets have been placed on the outcome of the presidential election across Polymarket and Kalshi.