Prediction Markets Draw Users Away From Sportsbooks, Survey Finds

Prediction markets are increasing competition for traditional sportsbooks, with more than a third of consumers reporting that they now use betting platforms less frequently, according to a survey from Fullstory.

The behavioural data company found that consumers consider several factors when choosing between gaming and prediction market platforms.

Platform reputation was cited by 60% of respondents, followed by ease of use at 59% and potential payouts or odds at 51%.

Jason Wolf, president of Fullstory, said the increasing number of betting and gaming options was placing greater emphasis on the quality of operators’ digital platforms.

“Consumers are being presented with more options for how they can participate in online gaming, creating a more competitive landscape where a seamless digital experience is increasingly becoming part of the value proposition,” said Wolf.

Prediction Markets Increase Competition

The survey found that 53% of bettors regularly compare prediction markets with gaming platforms before deciding where to place a bet.

Sports was the most popular category among prediction market users, with 62% participating in sports-related markets.

Financial and economic events were used by 42% of respondents, while 41% participated in markets related to politics and elections. Entertainment and pop culture events accounted for 26%.

Prediction market operators have continued to expand their sports offerings during 2026. Kalshi partnered with sports data provider Genius Sports earlier this year to offer sports event contracts through Legend Prediction, while Robinhood and Crypto.com have also expanded their prediction market products amid regulatory disputes in several US states.

Digital Experience Influences Customer Retention

Fullstory’s research also examined the impact of users’ digital experiences when choosing betting and prediction market platforms.

A total of 83% of respondents said they would be somewhat or very likely to stop using a gaming platform following a negative digital experience.

Overly complicated processes were identified by 38% as the primary reason they would abandon a gaming or prediction market platform.

Platform performance was also highlighted as a factor in customer retention, with 51% citing fast performance as a reason to return. Clear information about markets and payouts was cited by 45%.

Meanwhile, 79% of respondents said access to real-time information and platform responsiveness was either very or extremely important when participating in betting or gaming activities.

Prediction Markets Face Regulatory Scrutiny

The findings come as prediction markets continue to face scrutiny from regulators, lawmakers and responsible gambling organisations in the US.

The National Council on Problem Gambling (NCPG) recently said prediction markets can expose consumers to risks associated with traditional gambling and called for measures including age verification, self-exclusion tools and clearer risk disclosures.

The organisation cited research indicating that 85% of Americans believe prediction markets can contribute to unhealthy or addictive behaviours, while 84% support the introduction of gambling-style consumer protections.

Debate around the sector has also included questions over market integrity and the potential use of non-public information in event contracts.