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Prediction markets are rapidly gaining traction, evolving from niche forecasting tools into mainstream financial-like products that attract substantial trading volume and attention. While political markets once dominated the sector, sports prediction markets are now a key growth driver and a reason everyday bettors are engaging with these platforms.
The legal and regulatory landscape has shifted significantly. Polymarket has already begun reentering the U.S. market following regulatory approval to operate under a CFTC-compliant model. PredictIt also secured a legal win against the Commodity Futures Trading Commission (CFTC) in 2025, giving it continued operation.
Meanwhile, investment activity and platform launches across traditional sports-betting brands signal growing interest in prediction markets from established players, like DraftKings and FanDuel.
Below is a look at the major sports prediction markets in the U.S., the most recent developments and what to watch in 2026.
Kalshi
Kalshi remains among the most prominent regulated prediction market platforms in the U.S. The company holds a CFTC registration as a Designated Contract Market (DCM) and offers event contracts across sports, politics, finance and pop culture.
Sports markets on Kalshi cover major leagues like the NFL, NBA, MLB and NHL, as well as international events. However, availability varies by state due to ongoing legal disputes with state regulators over whether CFTC oversight preempts state gambling laws.
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Litigation: Kalshi has faced cease-and-desist orders in multiple states that argue sports event contracts constitute illegal gambling. Federal courts have been split on whether federal derivatives law preempts state authority.
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Federal court decision: A recent federal judge blocked Tennessee’s bid to bar Kalshi’s sports contracts, indicating the legal conflict between federal regulation and state gaming laws will continue into 2026.
Kalshi continues to expand markets and user engagement while navigating this patchwork of legal challenges.
Kalshi’s growth trajectory accelerated dramatically through 2025, marked by a series of high-profile partnerships and record trading activity that have helped mainstream prediction markets. The company secured data integration deals with major news outlets CNN and CNBC, making it the first prediction market to supply real-time probability data directly into newsroom workflows and on-air broadcasts — including dedicated tickers and editorial integration starting in 2026.
These collaborations aim to position prediction markets as tools for understanding future events, not just as trading platforms, and significantly expand Kalshi’s audience beyond traditional bettors.
At the same time, Kalshi’s funding and usage have surged: a $1 billion financing round lifted its valuation to approximately $11 billion, and trading activity, especially in sports contracts, has driven weekly volumes into the billion-dollar range, signaling strong user engagement and investor confidence in the platform’s growth potential.
Fanatics Markets
Fanatics entered the prediction market sector with Fanatics Markets, a new app launched in December 2025 that is operational in roughly two dozen states.
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The platform offers event contracts across sports and other outcomes, often focusing on regions where Fanatics’ sportsbook doesn’t operate.
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Fanatics Markets runs through an existing CFTC-registered exchange (via Crypto.com’s infrastructure) to provide regulated access.
Though newer and smaller than some competitors, Fanatics’ entry reflects broader interest from major sports-brand operators.
Polymarket
Polymarket has reentered the U.S. market after restructuring under a regulated derivatives exchange model (via acquisition of QCEX) and securing CFTC approval. It has begun rolling out its U.S. trading app with an emphasis on sports and other markets.
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Focus and scope: Polymarket offers a broad slate of markets — including sports outcomes — and leverages a crypto-native infrastructure. Initial U.S. availability has been phased in, with broader public rollout continuing in 2026.
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Industry recognition: Polymarket’s markets have occasionally been showcased in mainstream settings (e.g., entertainment award forecasting), highlighting its increasing visibility.
Polymarket’s return to the U.S. has been accompanied by notable momentum in market engagement and mainstream visibility. In late 2025, Polymarket briefly climbed to No. 1 on Apple’s free sports-app chart, outpacing major competitors like FanDuel and DraftKings despite still being in a phased rollout and available primarily to users on a waitlist.
The platform also secured a landmark partnership with the National Hockey League, marking the first time a major U.S. professional sports league licensed its data, marks and logos to a prediction market and underscoring Polymarket’s push to deepen fan interaction with real-time event contracts.
Polymarket’s regulatory reentry makes it one of the key players to watch in 2026, though its full nationwide availability will depend on ongoing compliance and rollout.
PrizePicks Predict
PrizePicks expanded into the prediction market space by partnering with major market operators. There are two key integrations tied to its offering:
Kalshi partnership: PrizePicks now offers prediction market contracts through Kalshi’s federally regulated platform in 38 states plus Washington, D.C., covering sports, entertainment, pop culture and more. Sports prediction contracts are live in roughly 15 states.
Polymarket partnership: PrizePicks also announced a multi-year partnership with Polymarket to bring its event contracts into the PrizePicks platform once Polymarket’s U.S. operations are fully live.
PrizePicks Predict emphasizes accessibility and simplicity, aiming at users familiar with daily fantasy sports and traditional DFS entry mechanics.
FanDuel Predicts
FanDuel’s prediction market arm, FanDuel Predicts, launched in December 2025 and is already live in all 50 states with sports prediction markets.
The platform operates through a partnership with the CME Group, leveraging established financial market infrastructure.
It focuses on major American sports (NFL, NBA, MLB and NHL) and broader event contracts, blending prediction markets with derivatives-style offerings.
FanDuel’s brand recognition and capital backing make FanDuel Predicts a significant new entrant poised for growth.
Up-and-coming player in sports prediction markets
New market entrants are entering the space as well. For example, Betr Predictions is an emerging prediction market platform expected to launch in early 2026.
Continued innovation and new launches are likely as prediction markets gain mainstream attention.
Who wins the prediction market arms race?
Kalshi and Polymarket remain at the forefront of the sports prediction market landscape — Kalshi with broad federal regulation and Polymarket with a staged reentry backed by derivatives compliance. Emerging platforms like FanDuel Predicts, Fanatics Markets and PrizePicks Predict are rapidly gaining users and expanding market reach.
However, legal and regulatory challenges remain a defining theme for 2026, as states continue to challenge prediction market operations and courts weigh federal versus state jurisdiction.
