In a remarkable turn of events, trading on sports prediction markets reached an impressive $68.2 billion in September, nearly doubling as college and NFL football seasons kicked off. This surge highlights a growing interest in alternative betting platforms, even as traditional sportsbook stocks plummet.
Kalshi continues to lead the market, reporting a 65% increase in its trading volume, which rose from $30.2 billion to $50 billion. However, its market share has slightly declined from 76.1% to 73.4%. The platform's combo contracts, which bundle multiple outcomes, saw a significant rise, although its dominance in this area also diminished.
Smaller competitors such as Polymarket U.S. and DKeX have experienced remarkable growth. Polymarket U.S. saw its volume skyrocket by 127% to $8.3 billion, while DKeX, linked to DraftKings, surged from $88.7 million to $1.9 billion, making it a notable player in the combo market.
In stark contrast, shares of major sportsbooks like Flutter and DraftKings have dropped over 70% from their 2025 highs. Flutter's stock recently hit its lowest point since March 2020, largely due to regulatory changes in Brazil and disappointing revenue forecasts. DraftKings has also faced scrutiny over its marketing practices, which may be impacting investor confidence.
As the prediction market landscape evolves, Kalshi is reportedly in discussions to secure $1 billion in funding, potentially valuing the company at $40 billion—far exceeding the combined market value of Flutter and DraftKings.
