Sharp Bettors Moving Cash to Prediction Markets, Sports Expected to Extend Volume Dominance
Posted on: March 26, 2026, 02:32h.
Last updated on: March 26, 2026, 02:32h.
- Experts say large, skilled bettors are embracing the convenience of prediction markets
- Sports seen extending volume, liquidity leads on prediction market platforms
- Sportsbook apps still provide the superior user experience
The convenience offered by prediction markets is driving more highly skilled bettors to move capital to those platforms over traditional sportsbooks.
That’s one key takeaway from a call recently hosted by Citizens Equity Research analyst Jordan Bender Isaac Rose-Berman, a fellow at the American Institute for Boys and Men (AIBM), Py Research co-founder Canzhi Ye. Rose-Berman noted on the call that part of the allure with platforms such as Kalshi is the sharp bettors can easily deposit $50,000, $100,000 or large sums and get down to business without fear of being limited. Conversely, traditional sportsbooks have reputations for limiting or barring winning bettors known for wagering large sums.
You are able to go and then trade in a way that you wouldn’t on DraftKings and FanDuel and most sportsbooks,” the AIBM fellow said on the Citzens call. “And so that’s very appealing for the high-value or high-skilled customers.”
Part of prediction markets deposit advantage lies in the fact that operators such as Kalshi and Polymarket accept deposits in some major cryptocurrencies and select stablecoins, allowing clients – even those transacting in large sums – to immediately fund accounts. State regulators don’t allow sportsbooks to directly accept crypto for account funding purposes.
Sports to Remain Focal Point on Prediction Markets
Yes/no exchanges are attempting to bolster their appeal to institutional traders, notching partnerships with ties to finance. Those efforts may pay dividends over the long haul, but Rose-Berman and Ye said on the Citizens call, sports are likely to remain the primary drivers of liquidity and volume on prediction markets for the foreseeable future.
Industry participants are trying to spread their wings beyond sports, but as Rose-Berman pointed out on the Citizens call, the regularity of the sports calendar is more appealing than one-off events and that’s not lost on retail traders.
“It’s just hard for me to imagine the volume on prediction markets from recreational users shifting significantly away from sports,’ said the AIBM fellow. “No one wants to go market make on who’s going to make the weather or how much snow there’s going to be in New York if the only other market participants are super sharp, right?”
Non-sports markets are viewed as integral to prediction markets’ growth and platforms such as Kalshi and Polymarket offer expansive menus of event contracts on a wide array of topics, including award shows, cryptocurrency prices, elections, mergers and acquisitions, initial public offerings (IPOs) and much more. The trick for operators is convincing more traders to embrace those markets in fashion comparable to sports.
Sportsbooks Have Advantages, Too
There are good reasons for sharp bettors to gravitate to yes/no exchanges, but they’re a small percentage of the broader sports wagering universe. In fact, sportsbooks retain some advantages over their prediction market rivals, including superior user interfaces.
Rose-Berman said on the Citizens call that just one of the hundreds of sports bettors he’s talked to in legal sports betting states prefer the Kalshi user experience to those of DraftKings and FanDuel. Ye said that may be a symptom of casual bettors being seduced by marketing or not yet being aware of the advantages of prediction markets.
Recreational bettors are “going to respond to whatever marketing or whatever catches their eye at a certain moment, and they’re not really thinking about advantages or disadvantages of using a certain app,” said the Py Research co-founder.
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