Prediction Markets: What They Are and How They Differ From Sports Betting

Also, Football accounted for more than 20.2% of the sports betting market share in 2025 and is expected to grow in the future positively affecting the sports betting market adoption trends. Football events generate the majority of revenue from all other types of sports in the sports betting market. Financial sports betting market growth, an improvement in living standards, and an increase in disposable income are all co-dependent factors affecting the sports betting market’s future trends. The anticipated sports betting market growth can be attributed to the increasing global use of smartphones and the internet. The platform segment of the sports betting market was led by the online platform segment, which is expected to dominate the sports betting market by the end of the forecast period, with a CAGR of 13%. Further, the sports betting market has begun to capitalize on the opportunity through eSports betting which in turn influences the sports betting market adoption trends.

Asian handicap removes the draw and offers two outcomes, often including lines that can result in a refund if the adjusted result is level (e.g., -1.0). For example, if Team A is significantly stronger, a handicap like Team A -1.5 means they must win by at least two goals for the bet to succeed. These types of betting markets are used to balance matches where there is a clear difference in strength between two teams or players. The most common example is total goals in a football match, where a line like 2.5 is set, and users choose between over or under. It is also a key factor when it comes to Choosing the sportsbook provider, as different providers offer varying levels of flexibility, market coverage, and control. For operators looking to start a sportsbook business, understanding betting markets goes beyond basic definitions.

For consumers, you would be forgiven for noting that the essential user experience of prediction market platforms, with respect to sports contracts, bears a very strong resemblance to the sports gambling apps you are familiar with. ’ That’s pretty important, so we’ll go ahead and list that anyway.” So we get a huge pool of suggested markets, and then we have a dedicated team called the Markets Team that takes this big pool of suggestions and evaluates what should go from suggestion to actual listed market. “We source suggestions from a tool on the site called Market Builder, where people can suggest markets; we source them from our Discord channel; we source them from Twitter; we source them from employees. Any contract listed on a prediction market has to be certified by the CFTC first. Entrepreneurs like the founders of Kalshi and Polymarket recognized that any event, including sports, could be bought and sold in the same way and regulated by the CFTC.

Safe and responsible betting ensures a positive and enjoyable betting experience. Retail sportsbooks may provide limited resources for comparison and research, making it harder for bettors to optimize their betting strategies. In contrast, retail sportsbooks might have limited offerings, particularly in states with restrictive sports betting laws. Online platforms offer diverse sports and events, allowing bettors to explore many betting opportunities, including traditional bets, prop bets, futures, and live betting options.

Most online sportsbook allow you to set deposit, wagering, and time limits to help you keep your betting in check. We also evaluate promotions for existing customers, like reload bonuses and sportsbook referral bonuses. They are all rushing to not be late to the party, while prediction markets are still new, or even unknown, to so many people.

“I think it’s an extension of the road that we’ve navigated with regulators for the last seven years,” King said. In an effort to appease the states that hold their gaming licenses, they are not offering sports markets (or, in some cases, any markets at all) in states that have legal sports betting. We accept our responsibility in pursuing litigation where that confusion exists because it’s critically important that overzealous state gaming boards not stand in the way of competition and innovation.” On the other side, it would be unreasonable to say most of the sports contracts on prediction markets don’t clearly mimic sports betting. “Frankly, when sports betting rolled out, you had established illegal operators that had a great product, and so the steps to close the betting sites gap were very clear. There are some similarities in how the industries grew quickly once the legal groundwork was set.

Sports bettors who are looking for non-traditional markets may turn to prediction markets to have a stake in things like the U.S. The popularity of prediction markets is likely to grow in the coming months and years. Betting on such serious matters is morally wrong, but people do engage with these markets. It may take you a while to understand how prediction markets work.

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