Prediction Markets in iGaming: Why They Need Their Own Vertical

Updated 26 august 2026
Online casino, Betting

People are becoming more interested in forecasting real-world events. A simple yes-or-no question lets them choose one of two outcomes. This clear format has helped a small niche grow into a major online product.

The numbers show how fast the change happened. Monthly volume across leading platforms rose from $32 million in January 2024 to $12.6 billion in January 2026. At least six top iGaming brands entered the category during 2025. This level of activity shows that demand and competition are already strong.

Such growth creates an important choice for operators. They can add the offer to an existing sportsbook. A dedicated vertical can receive its own budget and clear goals. It can also use language that suits the new audience. Note that in several jurisdictions, including the United States, prediction markets operate as regulated event contracts rather than traditional sports betting products, so the licensing and compliance model can differ from a standard sportsbook.

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Why a Separate Product Can Reach More People

Prediction markets: separate gambling format

A traditional sportsbook usually appeals to experienced bettors. Prediction markets attract another group. Some participants follow prices and use probability to judge public events. Others simply want a clear choice about a possible outcome. A dedicated section lets the operator present the format in clear, straightforward terms. Direct positioning helps newcomers understand the offer from the first screen.

Where a product sits on a website affects how much attention it receives. If prediction markets are hidden inside the sportsbook, many visitors may never see them. The team may also treat the format as one more betting option. This limits its budget and future growth.

Prediction Markets Need Their Own Place

Casino and sports betting already have clear roles on an iGaming platform. The new vertical serves people with different interests, so it needs a comparably clear identity of its own. A dedicated area helps visitors immediately understand what it offers, rather than mistaking it for another betting market.

A Simpler Format Can Attract New Customers

Many people find traditional odds difficult to understand. Simple yes-or-no questions give them an easier way to participate. The topics can also cover politics or entertainment. This wider choice helps operators reach audiences outside sports betting. Some visitors may later explore casino games or other products. Such movement may support a higher lifetime value for each new account.

A Separate Product Is Easier to Measure

Sportsbook reports can hide how the new category performs. Dedicated tracking shows how many people join and how often they return. It can also reveal which topics attract the most interest. Clear data helps managers decide how much to invest. They can improve promotion or adjust the interface. These choices become harder when every result is mixed with sportsbook activity.

Who Prediction Markets Can Reach

Target audience of prediction markets

The main opportunity lies outside the usual betting audience. These people may have little interest in casino games or sports wagers. A familiar topic and a simple choice can still bring them to an iGaming platform.

Traders and Market Watchers

Contracts and changing prices feel familiar to this group. These users often follow real-world events through probability. They may see the activity as a way to test their knowledge. Traditional gambling language may feel unsuitable for such visitors. Terms connected with positions or prices can be easier to understand. A dedicated product allows the operator to use the right vocabulary.

Sportsbook Beginners

A yes-or-no question is easy to follow. Visitors do not need to study several odds formats. They can read the event and choose one of two outcomes. This simple process reduces the learning barrier. A person can understand the offer during the first visit. That clarity may encourage another session later.

Existing Casino Players

Binary outcomes provide a simple introduction to event-based wagering. People can use the same account they already know. Familiar payment methods can also reduce extra steps. Clear explanations still matter. Casino customers may have little experience with contracts or event settlement. A separate area can guide them through the process.

Why Simple Design Matters

A traditional betting page can contain hundreds of options. It may also show several odds formats. Experienced bettors understand this layout, while newcomers can feel lost. A prediction market interface should keep the main action obvious.

The most important design elements:

  • clear yes-or-no questions;
  • short event descriptions;
  • visible settlement rules;
  • simple mobile controls;
  • consistent terminology.

These elements help visitors move from interest to a decision. The user can quickly see what the question means. A clear page also explains how the outcome will be settled. Easy navigation can support retention as well. People are more likely to return when they understand what has changed. A familiar layout helps them check their positions quickly.

What Operators Lose as They Wait

Standalone platforms are already building strong customer relationships. They also collect useful information about user interests. The scale became clear during the 2026 FIFA World Cup, when Kalshi recorded $27 billion in trading volume and about 3 million users. Traditional iGaming companies receive very little of this value when they stay outside the category.

Key losses from waiting:

  1. Customer relationships. Independent services become the first destination for people interested in event predictions.
  2. Useful data. Each visit shows which topics attract attention and how often users return.
  3. Extra revenue. Large volumes remain on external platforms that already know how to serve this audience.
  4. Product knowledge. Early entrants have more time to test prices and improve the user journey.

Waiting may seem like a safe choice at first. However, the gap grows as other companies gain experience. A late entrant may then need a larger marketing budget to catch up.

How to Add the New Vertical

Operators can choose between a standalone service and a dedicated area within an existing platform. Fanatics launched a separate app in December 2025. PrizePicks added event contracts to its current product one month earlier.

Both approaches can work. The chosen format should still have clear positioning and suitable language. Visitors must understand that they are entering a distinct part of the business. Internal ownership is also important. A named manager should guide product work and promotion. Clear responsibility prevents sportsbook priorities from using the entire budget.

Fixed Odds or P2P

The final setup depends on how the operator wants the product to work. Each model has a different structure. With fixed odds, the bookmaker sets the price and carries the risk. The user places a position against the operator. This option can connect with existing systems through an API or iFrame.

With peer-to-peer trading, customers buy and sell positions with each other. Prices change as demand moves. This model needs enough buyers and sellers to keep activity flowing. The right choice depends on the target audience and available technology. Both formats can support an independent vertical. The business should first decide whom it wants to serve.

The Main Things about Prediction Markets

The category has grown into a serious opportunity for iGaming companies, though its regulatory structure often differs from traditional sports betting and depends on the target jurisdiction. Its value comes from simple interaction and access to a wider audience. Operators should define its role and regulatory model before they choose the technical model.

Key points to remember:

  • Prediction markets deserve their own place because they serve a different audience from traditional sportsbooks.
  • Simple yes-or-no questions make event-based wagering easier for newcomers to understand.
  • A dedicated product gives managers clearer data and more control over development.
  • Early entry can give companies a potential advantage in building customer relationships before competition becomes stronger.
  • Fixed-odds and peer-to-peer models offer different ways to launch the vertical.

Prediction markets can become an important source of growth when they receive clear positioning and enough support. The Casino Market team can help build a scalable iGaming platform prepared for future opportunities.

Order a turnkey or White Label gambling solution and ensure timely addition of innovative verticals with industry professionals.

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