Kalshi and Polymarket predict market competition is heating up, with traditional betting and crypto platforms entering the arena in droves.

Kalshi, Polymarket and other prediction markets, with services covering events such as elections, Oscar winners, and climate trends, have gained popularity in the United States. However, over the past year, a significant portion of the betting volume on these platforms has come from sports betting, with Kalshi's sports betting accounting for the majority. Now, traditional sports betting companies and cryptocurrency exchanges are also entering the fray, competing in the prediction market arena. DraftKings, one of the two major online sports betting giants in the United States, launched its own prediction market yesterday, and its competitor FanDuel has promised to follow suit and launch a similar platform later this month. Cryptocurrency exchange Coinbase officially launched its prediction market business this Wednesday, while competitors such as Robinhood and Crypto.com had already entered the market by the end of 2024. Not everyone is pleased with the explosive growth of prediction markets. Traditional casino operators believe that these markets not only impact their own businesses, but also circumvent regulations in various states and tribes. Some sports leagues are also worried, as compared to other forms of betting, the federal government's regulation of prediction markets is more lenient, which could increase the risk of players fixing matches or breeding other related scandals.