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Generally, legal gambling has lots of protections and controls in place to at least theoretically limit manipulation of the odds.
It's also probably very bad for humans to gamble on things like wildfires or war crimes.
Do you mean "legal betting"? AFAIK poly market is legal most places.
I believe in my country there is no specific regulation of inside information used in sports versus other betting.
For example, using insider knowledge to manipulate stock markets will lead to the government taking away your earnings and sending you to prison.
An athlete using their position on the team to change the outcome of a game in order to win bets is generally met with ejection from the team and league, and there may be financial and legal penalties as well.
Casinos generally have detailed regulations to ensure that their games are fair representations of what is presented.
I'm not sure what country you're in, but you should probably take a closer look at the legal codes around sports betting.
Polymarket itself faces different levels of prohibition in many countries around the world.
I looked them up before writing my comment. They cover both legal and non-legal frameworks (i.e. being fired, not just being prosecuted) and all areas. They focus most on sports but use examples from other areas of life.