Payments Focus: How prediction markets offer a risk & reward venture to payment providers
With the polarizing growth of prediction markets, payment providers must determine whether the industry’s potential is worth the reputational gamble.
Over the previous 18 months, there has been no innovation in gaming more prominent than the introduction of prediction markets. Not since the rise of regulated sports betting has the industry seen such astronomical figures produced month-after-month by operators, including the likes of Kalshi, Polymarket, Robinhood, Underdog, PrizePicks and Crypto.com.
With such growth comes equal scrutiny, however, as prediction markets have quickly become the most polarizing topic in US gaming, with endless regulatory question marks at the state and federal level. Even with more familiar operators such as FanDuel and DraftKings entering the space, event contract trading has yet to become universally accepted in the US – for key reasons.