Prediction markets take a bigger bite of US sports gambling pie
Financial Times
February 14, 2026
AI-Generated Deep Dive Summary
Prediction markets are making significant inroads into the U.S. sports gambling industry, with major betting platforms like DraftKings and Flutter seeing their shares drop as investors grow concerned about competition from newer apps such as Kalshi. This shift highlights a growing trend where prediction markets, which allow users to bet on outcomes like election results or business performance, are increasingly attracting attention—and dollars—from traditional sports betting companies. The rise of these alternative platforms underscores the evolving nature of gambling technology and consumer preferences, potentially reshaping the industry landscape.
The article notes that Kalshi, a leading prediction market app, is particularly challenging for established players due to its innovative approach and ability to attract tech-savvy users. While DraftKings and Flutter have long dominated the sports betting market, the emergence of Kalshi and similar platforms signals a broader shift in how consumers engage with gambling apps. These new tools are not only offering unique betting options but also leveraging technology to provide more dynamic and interactive experiences.
The growing influence of prediction markets matters significantly for businesses in the gaming industry. It underscores the importance of innovation and adaptability in maintaining market share, as consumer demand evolves. For investors, this shift raises questions about the long-term viability of traditional sports betting platforms and the potential risks associated with the rise of more nimble competitors. As the industry continues to evolve, companies will need to closely monitor these developments to stay competitive and relevant in a rapidly changing landscape.
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Originally published on Financial Times on 2/14/2026