Prediction market platforms could expand dramatically and reach about US$1 trillion in annual trading volume by the end of this decade, according to a report from gaming consultants Eilers & Krejcik.
The report says sports prediction markets are expected to be a major driver of growth, accounting for roughly 44% of long-term trading activity. These platforms also cover politics, finance, culture, and other event outcomes.
The report highlighted the recent legal trouble that prediction market have faced. Numerous states, including Connecticut, Nevada, and New York, are involved in a legal battle with these platforms in one way or another.
Most of these battles revolve around sports event contracts that regulators consider to be unlicensed gambling, rather than federally regulated financial products.
