Prediction markets challenge traditional sportsbooks in advertising

Prediction markets such as Kalshi and Polymarket are increasingly competing with traditional sportsbooks in the advertising space. While online sports betting is currently restricted to 30 U.S. states, prediction markets operate under different legal frameworks by classifying user activities as swaps rather than traditional bets.

According to data from iSpot, sports betting advertising spend has increased by 39% year-over-year through August, approaching $275 million. Prediction markets have accounted for approximately $50 million, or 18%, of this total spend. This investment is expected to rise as these brands increase their presence during the upcoming NFL season.