In this article, experts from SOFTSWISS Sportsbook and NEXT.io explore the rise of prediction markets in iGaming, examining their distinct audience, product model and the strategic opportunity they present for operators.
Prediction markets have become one of the most talked-about opportunities in iGaming. According to the “Prediction Markets: From Trading to Betting” report, monthly volumes grew from $32 million in 2024 to $12.6 billion in 2026. At least six major iGaming operators entered the category in 2025: DraftKings, FanDuel, Fanatics, Underdog, PrizePicks, and N1Bet.
But before deciding how to launch prediction markets, operators need to decide what exactly they are launching. Is this another betting feature of an existing sportsbook, or an entirely new vertical with its own audience, user expectations, and commercial model?
That was the opening debate of the LinkedIn live panel “Prediction Markets for iGaming: Risks and Opportunities,” where experts from the SOFTSWISS Sportsbook and Next.io discussed how operators should approach this category. The speakers agreed that prediction markets are not a sportsbook feature or a casino add-on. A different audience and user psychology make them a third independent vertical.
Prediction markets attract an audience that existing iGaming products cannot reach
The case for a prediction market brand starts with the user. Pierre Lindh, Co-Founder and Managing Director at Next.io, shares: “This is a trading product, and the customers don’t see themselves as gamblers; they see themselves as traders. And this product has a different tone of voice, a different terminology, and it caters to a different audience essentially.”
Anton Lishchuk, Business Development Manager at SOFTSWISS Sportsbook, drew a similar conclusion from the operator side: “It’s a completely new vertical embracing new clientele, punters, and gamblers. Those who do not have decent experience in sports betting or casino, or regular people who just want to spice up their gambling experience with something completely understandable for them.”
For iGaming operators, this creates an attractive commercial opportunity. Prediction markets can attract users that sportsbook and casino products simply do not reach. Treating the vertical as an extension of something already on the shelf means under-investing in it from the start.
A different audience expects a different product
If prediction markets attract different users, they also need a distinct product experience.
Traditional sportsbooks present players with hundreds of markets, odds formats, and betting options. Experienced bettors may appreciate that level of detail, but newcomers find it difficult to understand.
Pierre Lindh believes prediction markets offer a simpler alternative: “When I go to a betting site, I am met with a really complicated spreadsheet of options. This is quite difficult to understand even for someone who has experience in sports betting, let alone the new generation of players who perhaps want a much more simplified experience.”
Prediction markets resolve that friction with a binary structure. Instead of navigating dozens of betting markets, users answer a straightforward question and choose between two outcomes.
Iren Kuznietsova, Head of Partner Success at SOFTSWISS Sportsbook, noted what this means for operators. “Prediction markets can serve as a natural entry point for casino players who have never engaged in event-based wagering. The simplicity of a yes/no outcome lowers one of the biggest barriers traditional sportsbooks face.”
This is why prediction markets should be treated as their own vertical. The format, audience, and player journey are sufficiently distinct to justify a separate product approach.
For growth-oriented operators, waiting is no longer a strategy
Once operators accept that prediction markets are a distinct vertical, they should decide whether they intend to compete in this category at all.
As Lishchuk pointed out, the standalone-versus-engagement-tool question does not need to be answered in absolute terms. The better question for an operator entering the market now is whether they want to own the vertical inside their platform or leave it to non-iGaming services.
Standalone prediction market platforms are already building direct relationships with their audience. Every player acquired by Polymarket or Kalshi represents data, engagement, and future revenue. iGaming operators that stay on the sidelines capture none of that value. For example, Kalshi alone took $40 billion in sports wagers and gained three million new users during the recent FIFA World Cup – a value that remained outside the traditional iGaming market.
The decision of entering prediction markets is therefore becoming less about product architecture and more about business strategy. The real commercial risk is inaction, not a wrong model choice.
While some operators are still deciding whether to enter prediction markets and how to position them in their portfolios, others are already winning a new audience. For those ready to move, the next question is which model to build on: fixed-odds or peer-to-peer.
Watch the full panel recording on the SOFTSWISS LinkedIn page. More details about the prediction market integration are available on the SOFTSWISS Prediction Markets platform page.