The swell of gaming-style prediction market contracts is catching the attention of lotteries around the world, as two prominent trade associations are urging legislators and regulators to require event contract platforms to obtain licenses and meet requirements imposed on regulated gaming operators.
Speaking at the Oklahoma Indian Gaming Association Conference, the chairman of the California Nations Indian Gaming Association (CNIGA), James Siva, explained that tribal casinos could lose as much as 25% of their gross revenue if prediction markets expansion continues unchecked.
The North American Association of State and Provincial Lotteries (NASPL) has urged regulators to classify prediction markets as gambling products subject to the same licensing and oversight as traditional betting.
The World Cup attracted record-breaking trading volumes at prediction markets.
Tribal gaming receipts hit an all-time high last year, with commercial casinos also reporting record revenues. However, sports betting has taken a dip, with industry chiefs blaming the “explosive rise” of prediction markets.
Underdog was one of the first gaming operators to begin offering access to prediction markets trading on its platform. Almost a year later, it has launched its own in-house exchange.
Prediction market trading surged during the World Cup, increasing competitive pressure on traditional U.S. sportsbooks as platforms such as Kalshi rapidly expanded their market share.
Kalshi has partnered with AppliedXL to launch a pilot suite of prediction markets tied to clinical trial outcomes and FDA regulatory decisions.
Rep. Josh Gottheimer is leading a legislative effort in Congress to ensure prediction markets and online sportsbooks to verify they accept only age-appropriate users via facial recognition.
There’s no escaping the news about prediction markets. Over the last two years, their popularity has grown exponentially – and more traditional sportsbooks are now looking at new ways to tap into the prediction market opportunity.
According to West Virginia Attorney General JB McCuskey, the Supreme Court will weigh in on the controversial field of sports event prediction markets sometime in 2027.
As states and gaming operators battle prediction markets, Light & Wonder's Howard Glaser suggests cutting off access to payment platforms.
