People might actually pay more attention to elections if they had a little money on the line, and that could make everyone more informed. I know there are risks like manipulation, but my gut says letting people bet on outcomes just feels like a natural way to gauge public opinion.
You make a fair point about it being bad for the community, and I can't really argue with that. I just still think people should be free to bet if they want to, and it might make them follow politics more. Not sure though.
Honestly, if we let people bet on sports and horse races, I don't see why elections are so different. It's just another way for folks to show what they think will happen. I know it's risky, but it still feels like a freedom thing to me.