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Planet Money · June 24, 2026 · 22m

Before Kalshi and Polymarket there was the Iowa Electronic Markets

This excerpt from NPR's Throughline explores the forgotten history of prediction markets: election betting was once common but mysteriously disappeared in the 1940s, political party bosses used conspicuous gambling as a signal of confidence, and in the 1980s, the Iowa Electronic Markets predicted elections more accurately than polls 74% of the time, laying the groundwork for today's platforms.

This summary was generated from show notes and public descriptions, not from a full transcript review. Details may contain inaccuracies.

Canon

In the 1980s, the Iowa Electronic Markets predicted election outcomes more accurately than traditional polls 74% of the time.

Highlights

Election Betting Was Mainstream Until the 1940s
Election betting was common until the 1940s, then mysteriously faded away.
Party Bosses Were Expected to Bet on Their Candidates
Political party bosses once conspicuously gambled on their candidates to signal confidence, even if they privately hedged.
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