I think prediction markets are deeply flawed since if they become big enough their odds will affect the events you bet on, and it will be just another way to manipulate public opinion if you have enough cash. There can be some legitimate use cases of this though -

for example they can replace "creator coins". An influencer creates an event "will my blog reach 100,000 subscribers in 2026", buys some YES tokens and gets his community to do the same. They all win if his community is active and promotes his blog. YES token becomes his creator coin.