--- title: Warren Buffett Warns That Prediction Markets Are 'Gambling,' Not Investing description: Warren Buffett compared short-term options trading to "gambling" and called prediction markets a "casino." authors: - name: Martha C. White role: Writer url: https://money.com/author/martha-c-white/ education: BA, English, Princeton University at_money_since: 2015 articles: 349 covers: - Investing - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Federal Reserve Rate Cuts - Health and Wellness - Housing - Identity Theft - Insurance - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Taxes - Technology editors: - name: Julia Glum role: Managing Editor url: https://money.com/author/julia-glum/ bio: Julia Glum joined Money in 2018 and specializes in covering financial trends that affect everyday Americans' wallets. She also writes Dollar Scholar, a weekly newsletter that teaches young adults how to navigate the messy world of money. education: University of Florida at_money_since: 2018 articles: 453 covers: - Investing - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Taxes - Technology also_seen_in: - Newsweek - International Business Times - CBS News - Good Morning America - WUSA9 - Pix 11 - The New York Times - Mashable - The Washington Post - CNBC - Politico social: - https://x.com/superjulia - https://www.linkedin.com/in/julia-glum published: '2026-05-04T12:10:29.000Z' modified: '2026-05-04T12:10:29.000Z' section: Investing word_count: 313 canonical: https://money.com/warren-buffett-prediction-markets-gambling/ type: Article source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Warren Buffett leans forward towards a microphone](https://img.money.com/2026/05/GettyImages-849880036.jpg) In a surprise interview during Berkshire Hathaway's annual shareholder meeting over the weekend, billionaire investor Warren Buffett expressed a dim view of [prediction markets](https://money.com/prediction-markets-101-read-this-guide-before-you-start-placing-bets/), comparing them to a casino. "If you're buying one-day options or selling them, I mean, that's not investing, it's not speculating — it's gambling," Buffett [told CNBC](https://www.cnbc.com/video/2026/05/02/watch-cnbcs-full-interview-with-berkshire-hathaway-chair-warren-buffett.html) on Saturday. Prediction markets are platforms where traders can bet on real-life events. Companies like Polymarket (which [reportedly](https://www.wsj.com/finance/investing/polymarket-kalshi-betting-profits-prediction-markets-eb23ac11) has over 2.3 million accounts) and Kalshi (5 million) have exploded in popularity in recent months despite warnings from experts about their many risks. Now, the Oracle of Omaha is joining the chorus. "We've never had people in a more gambling mood than now," he added. "The casino has gotten very attractive." Buffett also noted that the short-term nature and high [volatility](https://money.com/warren-buffett-rule-not-running-out-of-money-retirement/) of prediction markets makes them attractive for cheaters, referencing the recent news that a special-forces soldier was charged with [insider trading](https://money.com/polymarket-refunds-insider-trading-arrest/) for using secret military information about the Trump administration's clandestine ouster of Venezuelan President Nicolás Maduro to place bets on prediction markets. Comparing them to a "a church with a casino attached," Buffett expressed disdain for short-term options trading and prediction markets: a position that likely stems from his long-held and oft-quoted [advice](https://money.com/warren-buffett-boring-stock-pick-that-wins/) to only invest in what you understand. "Nobody can explain why they're buying an option for one day," he said. Buffett, who stepped down as CEO of Berkshire Hathaway last year, grew the conglomerate into a $1 trillion business during his 60 years at the helm by embracing a long-term, buy-and-hold [investment strategy](https://money.com/warren-buffett-advice-for-over-50/). Buffett's successor, Greg Abel, echoed this sentiment at Saturday's meeting when he answered a shareholder question about how young investors should balance patience with action. "We very much have to understand what we're investing in," he said. "Do we understand this business? Do we understand the opportunity and, more importantly, do we understand the risk?" ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/warren-buffett-prediction-markets-gambling/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Investing", "item": "https://money.com/investing/" }, { "@type": "ListItem", "position": 3, "name": "Warren Buffett Warns That Prediction Markets Are 'Gambling,' Not Investing" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/warren-buffett-prediction-markets-gambling/#webpage", "url": "https://money.com/warren-buffett-prediction-markets-gambling/", "name": "Warren Buffett Warns That Prediction Markets Are 'Gambling,' Not Investing", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2026-05-04T12:10:29.000Z", "mainEntity": { "@id": "https://money.com/warren-buffett-prediction-markets-gambling/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/warren-buffett-prediction-markets-gambling/#breadcrumb" }, "dateModified": "2026-05-04T12:10:29.000Z" }, { "@type": "Article", "headline": "Warren Buffett Warns That Prediction Markets Are 'Gambling,' Not Investing", "articleSection": "Investing", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2026/05/GettyImages-849880036.jpg", "width": 1024, "height": 697, "caption": "Explainer-Warren-Buffett-Warns-Prediction-Markets" } ], "author": [ { "@type": "Person", "name": "Martha C. 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