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Prediction market platforms cemented their role in election forecasting on Tuesday, when markets accurately predicted a host of races before the polls closed, and projected outcomes before news outlets. Democrats were seen as favored to flip both the U.S. House of Representatives and Senate on prediction markets before the first polls closed at 6:00 p.m. ET Tuesday, and were seen as narrow favorites to take at least 53 Senate seats, while a 54th was forecast as a toss-up. So far, Democrats have won 54 Senate seats — including wins in Iowa, which prediction markets placed at 50-50 odds, and South Carolina, where Republicans narrowly favored.
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