SOFTSWISS prediction markets report highlights iGaming growth trends

SOFTSWISS has released a detailed report examining the rapid rise of prediction markets and the implications for the global iGaming industry. The publication explores the evolution of prediction-based wagering, the competitive landscape, regulatory considerations and the opportunities available for operators seeking to expand their product offerings.

Titled “Prediction Markets: From Trading to Betting”, the report presents a broad overview of how prediction markets have moved from niche financial-style products into a fast-growing segment attracting attention from sportsbook operators, technology providers and investors. The research also outlines how the category is increasingly intersecting with traditional sports betting and online gambling operations.

The report arrives at a time when prediction markets continue to attract growing levels of activity worldwide. Industry participants are paying closer attention to the sector as new platforms emerge and user engagement expands across multiple jurisdictions.

Prediction markets continue rapid expansion

According to the report, prediction markets have evolved significantly over the past two years. What was once considered an experimental niche has developed into a high-volume digital product category supported by large user communities and substantial trading activity.

SOFTSWISS stated that monthly trading volume across the segment increased from $32 million in January 2024 to approximately $12.6 billion by January 2026. The company believes this growth demonstrates a significant shift in consumer interest and digital wagering behaviour.

The report traces the historical roots of prediction markets back several centuries, including early forms of event-based speculation tied to papal elections during the 15th century. Over time, these mechanisms evolved into more sophisticated financial and digital products that allow users to speculate on future outcomes in politics, economics, sports and entertainment.

Modern prediction market platforms now operate using a variety of models. Some rely on peer-to-peer trading systems similar to financial exchanges while others offer fixed-odds structures that resemble conventional sportsbook products.

The study analyses leading operators in the space including Polymarket and Kalshi along with newer launches connected directly to the iGaming sector during 2025 and 2026.

Sports emerges as a leading category

The report identifies sports-related events as one of the strongest-performing segments within prediction markets. According to the research, sports continues to generate substantial activity across both trading-focused and betting-focused platforms.

SOFTSWISS highlighted that four of the ten most profitable wallets on Polymarket between January and March 2026 were primarily focused on sports-related trading activity. Combined profits from those accounts reportedly reached approximately $22 million during the period.

The company argues that this overlap between sports betting audiences and prediction market users creates potential commercial opportunities for established sportsbook operators.

Alexander Kamenetskyi, head of operations at SOFTSWISS Sportsbook, commented: “Monthly volume grew from $32m in January 2024 to $12.6bn in January 2026 – a scale shift the industry can no longer afford to dismiss. That is no longer a trend – it is a fully formed product category. And critically, almost none of that volume has flowed through traditional operators.”

The report further references market forecasts from investment research firm Bernstein, which projects that the global prediction market sector could reach $1 trillion in value by 2030. It also notes forecasts suggesting trading volume could increase by 370 per cent before the end of 2026.

While such projections remain subject to market conditions, regulation and consumer demand, the report indicates that industry stakeholders are increasingly viewing prediction markets as a long-term commercial segment rather than a temporary trend.

Regulatory frameworks remain fragmented

A major section of the report focuses on regulatory treatment across different regions. The company notes that prediction markets continue to operate under varying legal frameworks depending on jurisdiction and product structure.

The research examines regulatory developments across North America, Latin America, Europe, Asia, Africa and Oceania. According to SOFTSWISS, some jurisdictions treat prediction markets similarly to financial products while others classify them closer to gambling or betting services.

This fragmented regulatory environment creates both opportunities and operational challenges for companies seeking international expansion. Operators entering the sector may need to consider licensing obligations, consumer protection standards and market-specific compliance requirements.

The report also points out that regulatory interpretation may continue evolving as governments and oversight bodies respond to the increasing popularity of event-based trading and wagering products.

Demand signals analysed within the report indicate that the United States and United Kingdom have experienced some of the strongest recent growth trajectories. Canada and Australia have also demonstrated expanding consumer interest.

However, the company stresses that local compliance strategies remain essential due to differing regulatory expectations across each market.

SOFTSWISS launches its own prediction markets solution

The publication follows the launch of SOFTSWISS Sportsbook Prediction Markets, the company’s own product offering designed for iGaming operators.

According to SOFTSWISS, the solution enables operators to provide event-based wagering opportunities across multiple categories including politics, economics, sport and entertainment.

Unlike peer-to-peer trading exchanges, the company’s model uses fixed-odds betting mechanics. SOFTSWISS states that this structure is intended to align more closely with existing sportsbook infrastructure and licensing frameworks already used by many operators.

The company believes this approach could reduce operational complexity for businesses seeking to introduce prediction market functionality without substantially changing the user experience.

SOFTSWISS said the product can be deployed either as a standalone iFrame widget or through direct integration with the SOFTSWISS Sportsbook platform. Existing partners are reportedly able to implement the solution within two to three days.

The company positions the offering as a practical extension of traditional sportsbook operations rather than a replacement for established betting products.

Industry interest expected to increase

Prediction markets continue attracting wider discussion across the technology, finance and gambling sectors. Supporters argue that such products provide highly engaging experiences driven by real-world events while critics in some markets continue raising questions regarding oversight and regulatory classification.

The SOFTSWISS report suggests that operators who closely monitor legal developments and consumer behaviour may identify new growth opportunities within the category. At the same time, it emphasises the importance of responsible product deployment and jurisdiction-specific compliance planning.

Industry observers note that consumer familiarity with event-based speculation has increased significantly in recent years, particularly among younger digital audiences accustomed to fast-moving online platforms and real-time engagement.

As competition intensifies, traditional iGaming companies may continue exploring whether prediction markets can complement existing sportsbook and casino products.

Conclusion

The latest report from SOFTSWISS highlights how prediction markets are increasingly becoming part of broader discussions surrounding the future of online betting and digital entertainment. With trading volumes expanding rapidly and consumer interest growing across multiple regions, the category is attracting serious attention from operators, investors and regulators alike.

While the long-term regulatory outlook remains uncertain in some jurisdictions, the report suggests that prediction markets are evolving into a more established segment of the global iGaming ecosystem. The combination of sports engagement, event-driven participation and digital accessibility appears to be creating new commercial opportunities for operators prepared to adapt.

For established sportsbook brands, the sector may represent a strategic extension of existing wagering products rather than an entirely separate business model. As companies continue assessing consumer demand and compliance obligations, prediction markets are likely to remain an important topic within the next phase of iGaming industry development.

FAQs

What are prediction markets?
Prediction markets are platforms where users speculate on the outcome of future events such as elections, sports matches or economic developments.

Why is SOFTSWISS focusing on prediction markets?
SOFTSWISS believes prediction markets are becoming an important growth segment within the broader iGaming industry.

What does the SOFTSWISS report examine?
The report reviews the history, market growth, regulatory landscape and commercial opportunities connected to prediction markets.

How much has the prediction market sector grown recently?
According to the report, monthly trading volume increased from $32 million in January 2024 to $12.6 billion in January 2026.

Which companies are mentioned in the report?
The report discusses platforms including Polymarket and Kalshi along with newer iGaming-focused prediction market products.

Why are sports important in prediction markets?
Sports events generate high levels of user engagement and trading activity across many prediction market platforms.

What is the SOFTSWISS Prediction Markets product?
It is a solution developed by SOFTSWISS that allows operators to offer event-based wagering across several categories.

How does the SOFTSWISS model differ from peer-to-peer exchanges?
The SOFTSWISS product uses fixed-odds betting rather than peer-to-peer trading mechanics.

Which regions are seeing strong demand growth?
The report highlights growth in the United States, United Kingdom, Canada and Australia.

Can existing sportsbook operators integrate prediction markets easily?
SOFTSWISS states that its solution can integrate with existing sportsbook infrastructure within a short implementation period.