Published on: March 26, 2026, 02:32h. 

Updated on: March 26, 2026, 02:32h.

• Analysts reveal that experienced bettors are turning to the convenience of prediction markets.
• Sports are expected to drive significant volume and liquidity in prediction market platforms.
• Sportsbook applications still offer superior user experiences.

The rise in popularity of prediction markets is enticing skilled bettors to allocate funds away from traditional sportsbooks.

This perspective emerged during a discussion led by Citizens Equity Research analyst Jordan Bender and Isaac Rose-Berman, a fellow at the American Institute for Boys and Men (AIBM). Rose-Berman highlighted that platforms like Kalshi appeal to serious bettors because they can deposit substantial amounts—$50,000, $100,000, or more—without concerns about being restricted. In contrast, traditional sportsbooks often limit or exclude successful bettors known for placing large wagers.

“You can engage in trading in a manner unavailable on DraftKings and FanDuel and other typical sportsbooks,” remarked the AIBM fellow during the Citizens call. “This is particularly enticing for high-value or highly skilled customers.”

A significant advantage of prediction markets in terms of deposit flexibility lies in their acceptance of major cryptocurrencies and select stablecoins, enabling clients—even those dealing with large sums—to swiftly fund their accounts. Unlike this, state regulations prevent sportsbooks from accepting cryptocurrencies directly for funding purposes.

Sports: The Central Focus of Prediction Markets

Yes/no markets are actively trying to enhance their attraction to institutional investors, forming alliances linked to finance. Though these strategies may yield benefits down the line, both Rose-Berman and Ye stated on the Citizens call that sports will likely remain the key source of liquidity and volume on prediction markets for the foreseeable future.

“It’s hard for me to envision recreational users shifting substantial volume away from sports on prediction markets,’ the AIBM fellow stated. “No one wants to become a market maker on weather predictions or snowfall in New York if the only other participants are extremely proficient bettors.”

Markets outside of sports are considered crucial to the expansion of prediction markets, with platforms such as Kalshi and Polymarket providing a wide variety of event contracts covering topics from award ceremonies to cryptocurrency values, elections, mergers, acquisitions, initial public offerings (IPOs), and much more. The challenge for operators lies in persuading more traders to engage with these markets at a level comparable to that of sports.

Sportsbooks Maintain Competitive Edges

While there are compelling reasons for sharp bettors to favor yes/no exchanges, they represent a minor fraction of the overall sports wagering landscape. In fact, sportsbooks still possess notable advantages over prediction market competitors, particularly in terms of user interface quality.

During the Citizens call, Rose-Berman indicated that out of the numerous sports bettors he has spoken with in legal sports betting jurisdictions, none preferred the Kalshi interface over those of DraftKings or FanDuel. Ye pointed out that this trend might stem from casual bettors being influenced by marketing efforts or simply not yet realizing the benefits that prediction markets offer.

“Recreational bettors are likely to react to whatever marketing or eye-catching promotions are available at the moment, without considering the advantages or disadvantages of a particular application,” noted the Py Research co-founder.