Prediction markets are increasingly influencing player behavior and betting volumes, with a strong focus on sports but growing interest in diverse topics.
At the Predict 2026 conference in New York, industry experts examined how prediction markets are changing betting habits and player demographics. These markets allow bettors to trade on outcomes ranging from sports events to cultural phenomena, providing an alternative experience to traditional sports betting.
Jeanie Hightower-Sellitto, senior vice president and general manager of DraftKings Predictions, highlighted that most trading volume originates from retail customers focused on sports, with cryptocurrency-related markets also gaining popularity. However, the product range is expanding to include cultural events, which tend to attract a higher proportion of female participants. For example, DraftKings offers markets on shows like Dancing with the Stars, aiming to engage audiences beyond typical sports bettors.
Despite this diversification, female involvement remains limited. Laila Mintas, founder and CEO of 365 Prediction, noted that existing products are not fully designed for women, and few brands actively target female sports or fans. She stated, “I think none of the friends out there are currently doing a lot to engage women,“ pointing to a gap in the market for more inclusive offerings that could broaden player engagement.
Research from Citizens equity research indicates that prediction markets have cannibalized approximately 45% of the sports betting industry in states where sports betting is legal. Yet, this shift has also expanded the overall market size by about 27%, suggesting that new players and larger wagers are entering the space. The typical prediction market customer is described as a male aged 29 to 31, though the audience is evolving.
Jordan Bender, managing director of equity research at Citizens, explained, “Through some of the work that we27ve done, we27ve found that around 45% of the sports betting industry has been cannibalized by prediction markets,” adding that this trend has stabilized recently. This means players who previously bet on sports may now be placing bets in prediction markets instead, but total betting activity is growing.
Tom Johnson, founder and CEO of HoldCrunch, compared the emotional engagement in prediction markets to traditional betting, emphasizing the adrenaline and emotional highs and lows players experience. He said, “The customers are very similar. It27s an emotional engagement. So I place a bet or trade. There27s adrenaline. If I win, I27m happy. If I lose, I27m not.” This suggests that while the format differs, core player motivations remain consistent.
For players, these developments mean more varied betting options but also highlight the need to understand new market dynamics and risks. The rise of prediction markets could lead to shifts in betting habits, with some players moving away from traditional sports betting. Consumers should be aware of the different regulatory environments and protections that apply to these markets, which may vary by state.
As prediction markets grow, regulators and operators will need to address player protection, especially given the evolving demographics and product types. Players interested in these markets should stay informed about responsible gambling tools and ensure they use licensed platforms.
For more on the regulatory context and player protections in the US, see CDC Gaming’s report on regulation. Also, the Sports Betting section covers ongoing changes affecting bettors. For broader coverage on player protection, visit our Player Protection category.
Source: CDC Gaming.
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