We actually did some research into creating an [LMSR prediction market with DLCs](https://www.bitcoinprediction.info/documents/Non_Custodial_Prediction_Markets_with_Bitcoin.pdf) earlier this year. The main problem with it is you need to code up a transfer mechanism for DLCs, and there are much higher liquidity requirements compared to ecash.

HYPERBITCOINZATION

Just a suggestion for further research, this is another newer option that allows for the dlc contract to enforced on chain in an efficient manner but allows for buy-ins and pay-outs over lightning when everyone cooperates: 

https://github.com/conduition/dlctix

bitcoin

Bet on the US election with sats on bitcoinprediction.market

Just a suggestion for further research, this is another newer option that allows for the dlc contract to enforced on chain in an efficient manner but allows for buy-ins and pay-outs over lightning when everyone cooperates: https://github.com/conduition/dlctix