The rapid rise of prediction markets is reshaping how Americans engage with sports, and the data and technology behind those markets represent a significant business opportunity. According to an August report from industry research firm Eilers & Krejcik, sports constituted ~82% of Kalshi's U.S. prediction volume in the last twelve months. The category is also growing fast. The report estimates that total monthly U.S. prediction market contract volume reached 49.0bn contracts in July 2026, representing growth of approximately 49x versus 0.9bn in August 2025. Prediction markets are catching up to traditional sportsbooks, too. Per Eilers & Krejcik, U.S. sports prediction market handle-analog accounted for 30% of combined prediction market and online sports betting handle in June 2026, up from 1-2% just one year ago.
Prediction markets let people buy and sell contracts tied to real-world outcomes. Kalshi and Polymarket are regulated by the CFTC rather than by state gaming regulators, giving them reach into states where regulated sports betting remains unavailable. In other words, prediction markets aren't just taking share from sportsbooks; they're bringing in new states and new customers. Even major sportsbook operators, including FanDuel and DraftKings, are building their own prediction market products and treating the category as an expansion lane. The money is following. U.S. prediction market app downloads reached a peak of more than 6 million in June 2026, led by Kalshi and Polymarket, according to Eilers & Krejcik. The firm also points to exchange fundraising targets implying valuations of up to $40 billion.
Every one of those contracts has to settle against something: the official result of the game. That's where Sportradar (NASDAQ: SRAD) comes in. If you've watched live odds shift on a sportsbook app mid-game, that's the kind of real-time data Sportradar provides. The company has spent decades building the data, live odds, fan engagement, customer acquisition capabilities, and integrity tools behind sports betting and media. Prediction markets need the same toolkit. "We see prediction markets as a natural extension of our core business and a significant opportunity where Sportradar is uniquely positioned to lead, given our premium content, global scale, and unmatched product portfolio," said Carsten Koerl, Founder and CEO of Sportradar. "Prediction markets expand the U.S. total addressable market by opening up new states, attracting new players, and increasing engagement with sports, all of which should drive higher revenue over time."
Three things stand out. Official data is the must-have. Every prediction market contract settles on the official result, and participants need that data in real time. Sportradar says decades of powering sports betting through official league partnerships give it some of the broadest and deepest sports content in the industry. The heavy lifting is already done. Sportradar reports its infrastructure, technology, sports rights, and industry relationships are already in place for sports betting. Serving prediction markets means applying what it has already built to new customers, so it can scale into the opportunity efficiently. Its market grows as the ecosystem does. Sportradar can sell beyond the exchanges to the market makers and brokers now entering the space. Those players need fast, reliable data to keep trading liquid, price contracts efficiently, and settle trades. As more of them arrive, Sportradar's opportunity grows with them. It's a classic "picks and shovels" setup. Importantly, Sportradar only works with authorized, registered, licensed operators and complies with all applicable regulations in every market where it operates.
Prediction markets show how Sportradar can adapt to where sports fans are heading and extend its technology beyond traditional sports betting. As the prediction markets boom plays out, Sportradar's model doesn't depend on which platform comes out on top. To learn more about how Sportradar powers prediction markets, click here. This content was originally published on Benzinga.
