I wonder what kind of bettor will have the heart to spend money earned from betting on people's misery. If a bettor bets on increased death rate and the death rate increases, his/her earning could be considered blood money. Better not to reward that kind of prediction..
Prediction market has to Moral
I can understand your opinion, but you need to understand that the world of gambling is not for the light-hearted since there are so many dark elements associated with it.
1 in 1000 people think about morals and ethics while the rest including me only concern themselves with the financial gains and losses. Money is the only thing that truly matters in the world of gambling.
Personally, I only refrain from placing bets on animal fights etc. You are always welcome to ignore such markets since no one is forcing you to bet on them.