Prediction markets (like the trump vs harris bet on Robinhood) can also be used as a hedge.
E.g. if before the election you think that a certain candidate winning would cause the markets to react in a certain direction, you could "bet" on the other candidate so that if your portfolio value goes down, you earn the proceeds from the bet to recoup some of your portfolio losses. Or if the "good for stock market" candidate wins, you loose the money you bet but the gains in your portfolio balances it out.
In that case, you're not really betting on who you think will win. You're just betting as a hedge just in case that person wins.
E.g. if before the election you think that a certain candidate winning would cause the markets to react in a certain direction, you could "bet" on the other candidate so that if your portfolio value goes down, you earn the proceeds from the bet to recoup some of your portfolio losses. Or if the "good for stock market" candidate wins, you loose the money you bet but the gains in your portfolio balances it out.
In that case, you're not really betting on who you think will win. You're just betting as a hedge just in case that person wins.