Marketplace All-in-One How prediction markets are transforming sports betting
Nov 25, 2025
Dustin Gouker, a gambling industry writer and analyst, dives into the booming world of online sports betting and the disruption caused by prediction markets. He explains how companies like FanDuel and DraftKings are adapting to this shift. Gouker contrasts traditional sportsbooks with prediction markets, highlights ongoing legal battles, and discusses the mixed reactions from sports leagues. With betting now at our fingertips, he raises concerns about youth access and the integrity of this evolving industry.
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Rapid Growth Since 2018 Ruling
- Online sports betting exploded after the 2018 Supreme Court decision, with over $100 billion wagered annually in the U.S..
- Sportsbooks keep about 10–15% of wagers, so the industry moves huge sums but earns a smaller slice.
Prediction Markets Run As Federal Exchanges
- Prediction markets operate under federal oversight via the CFTC and can offer markets nationwide to 18+ users.
- They function as exchanges where traders bet against other users or market makers, not against a house.
Trading Labels Don't Change The Activity
- Legally and practically, prediction markets are still sports betting even if platforms call it 'trading'.
- The core activity—putting money on outcomes—remains gambling despite different branding and mechanics.