A September survey of over 1,000 US consumers by Fullstory revealed that 60% of bettors modified their traditional sportsbook usage due to prediction markets|Baishampayan Ghose|CC BY-SA 2.0

Legacy platforms like DraftKings and FanDuel are facing a new challenge from prediction markets like Kalshi and Polymarket, which bypass state gaming boards by framing sports contracts as CFTC-regulated commodity futures.

This structure lets prediction markets operate without state sportsbook licenses or local betting taxes.

A September survey of over 1,000 US consumers by Fullstory found that 60% of bettors changed their traditional sportsbook usage because of prediction markets, with 35% using sportsbooks less and 77% switching platforms purely over user experience.

While 25% of respondents use both platform types, states like Illinois have proposed a 15% tax on prediction-market sports contracts to combat lost revenue, sparking legal battles in Nevada, New Jersey, and Maryland.