Prediction markets pull a third of bettors away from sportsbooks, pressuring US bookmakers
- —35% of bettors reduced use of traditional sportsbooks due to prediction markets
- —60% of respondents said prediction markets changed how often they bet
- —Legal US sports betting reached $166.94 billion in 2025, generating $3.71 billion in state taxes
- —American Gaming Association estimates states lost $1 billion in tax revenue to prediction markets
Why it matters: The fight over whether Kalshi and Polymarket contracts are federally regulated derivatives or state-licensed gambling will decide who collects billions in taxes and who oversees the market.
Source: DiarioBitcoin