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Gaming Edge’s TL;DR
- Sports-focused prediction market startups are trying to move deeper into territory long dominated by sportsbooks, and that could shape the next phase of US online wagering.
- ProphetX and 365Prediction are positioning themselves against larger names such as Kalshi and Polymarket, while a broader legal fight over sports event contracts continues to unfold.
Gambling Insider reports that ProphetX and 365Prediction believe sports users want a product built more like an exchange than a traditional sportsbook. The backdrop is a large market opportunity: Prediction market volume could reach $1 trillion by 2030.
Kalshi is the dominant force in the category, with Polymarket as another major rival. But newer entrants are arguing there is still room for specialized products.
Founder & CEO of 365Prediction Laila Mintas thinks so.
“Every transformational industry has had early pioneers, but history consistently shows that today’s leaders are not necessarily tomorrow’s dominant companies.”
ProphetX appears to be taking a partnership-led route rather than trying to win a crowded consumer race on its own. Dean Sisun, co-founder and CEO of ProphetX, said:
“Our game plan is not to entirely compete in that B2C market. It’s gonna get flooded really quick.”
ProphetX expects five or six partnerships to be live by football season, according to Gambling Insider.
Sports driving prediction markets right now
That strategy matters because direct-to-consumer competition as increasingly difficult, especially with established operators and exchanges already active.
ProphetX was approved as a Designated Contract Market and Derivatives Clearing Organization last month, while 365Prediction’s own DCM and DCO application remains pending with the Commodities Futures Trading Commission (CFTC).
Sports are driving a large majority of prediction market volume. If that remains true, sports-focused platforms may keep drawing attention from both investors and regulators.
The regulatory fight is still unresolved
The business opportunity comes with major uncertainty. Kalshi’s sports event contracts have been banned in Michigan and Nevada, while roughly 25 bills addressing prediction markets have been introduced in Congress.
Many observers believe the Supreme Court may ultimately decide whether prediction markets can offer sports markets. That leaves the sector in a transitional phase: Companies are expanding, but the legal framework is still being contested at both the state and federal levels.
Mintas argued the uncertainty does not necessarily weaken the category:
“We don’t view this as a sign of the industry being unsustainable. I think it’s quite the opposite.”
What players should take from this
For players, the main takeaway is that prediction markets and sportsbooks are increasingly overlapping, but they are not on settled ground. Companies such as ProphetX are pitching a different model, with Sisun arguing that exchange-style products can offer more flexibility than standard sportsbook menus.
That does not mean broad availability is guaranteed. The current picture includes CFTC approvals, pending applications, state-level bans, and possible action from Congress or the courts.
The next markers are clear: whether 365Prediction wins CFTC approval, whether ProphetX gets its expected partnerships live by football season, and whether courts or Congress move closer to setting firmer rules for sports event contracts.
Until then, this remains a fast-growing but unsettled corner of online gambling.
If you choose to bet in any form, do so responsibly.
Based on reporting by Marcus DiNitto for Gambling Insider.
