It seems like a case where betting can actually save lives and steer people towards the best solutions. They are worried that workers will tamper with results to make trails fail for a quick buck. If that’s possible they need better observation practices and for these workers to go to jail. But I doubt anyone offended by this betting believes these perverse incentives. Deep down what they are offended by is the unfortunate fact that drugs do fail. But the solution is to allocate resources thoughtfully and fairly to the best candidates, and I’m not seeing how betting interferes with that
This is exactly the sort of bad incentives that lead to things like deliberately throwing drug trials. Very small amounts of money make people do horrible things every day, by what magic would this be an exception?