Summary
People in the U.S. are betting on the amount of snow a winter storm will bring through platforms like Kalshi and Polymarket. These prediction markets are not only a hobby for individuals but also help businesses manage financial risks related to weather changes. Large companies such as utility firms use weather derivatives to protect against losses if weather conditions are milder than expected.
Key Facts
- Americans are placing bets on snowfall totals using prediction markets like Kalshi and Polymarket.
- On Kalshi, $170,000 was bet on New York's snowfall, with many betting on 15+ inches.
- On Polymarket, $80,000 in contracts were on New York's snow, with 31% predicting 14+ inches.
- Weather derivatives allow businesses to hedge financial risks against unexpected weather conditions.
- The weather derivatives market is estimated to be worth over $25 billion.
- Investment banks and institutional traders play a key role in managing these weather contracts.
- Prediction markets for weather are open to individuals and offer various betting options.
