Prediction market Kalshi overtakes Polymarket and sets off sports betting ‘land grab’

Core Insights - Kalshi has surpassed Polymarket in trading volumes for three consecutive weeks, with $728 million in bets last week, nearly 60% more than Polymarket and close to its record of $749 million during the 2024 US presidential election [1] - The growth in Kalshi's trading volume is primarily driven by the booming sports betting market, which has seen significant expansion since the Supreme Court's 2018 decision to allow states to legalize sports betting [2][3] - The US sports betting industry generated a record $13.7 billion in revenue last year, with projections suggesting it could reach $39 billion by 2030 [3] Company Insights - Kalshi's success in sports betting is attributed to its regulatory approval in the US, allowing it to operate legally in all 50 states, unlike competitors such as Polymarket, which face limitations [5][6] - Polymarket is preparing to enter the US market following its acquisition of QCX, a CFTC-licensed derivatives exchange, which may enhance its competitive position [6] Industry Trends - The sports betting market in the US is rapidly evolving, with 38 states having legalized the practice since 2018, leading to increased competition among prediction markets [2][4] - Analysts predict that the competition for sports betting via prediction markets will intensify in the coming months as more players enter the market [4][7]