Prediction markets took an estimated 27% of US sports-betting volume during the World Cup, according to H2 Gambling Capital.

In January, that figure was just 9%.

Kalshi led the charge, breaking its trading records repeatedly and topping DraftKings and FanDuel in daily app users, according to Apptopia data reported by Bloomberg.

• DraftKings stock is trading near recent lows. Where are DKNG shares going?

Why Sportsbooks Can’t Keep Up

Because prediction markets are overseen federally by the Commodity Futures Trading Commission (CFTC), platforms such as Kalshi can operate in states where sports gambling remains illegal, and accept users from age 18 rather than 21.

That edge may be weighing on DraftKings Inc. (NASDAQ:DKNG) and FanDuel parent Flutter Entertainment (NYSE:FLUT), with shares surging ahead of the World Cup before slumping as the tournament progressed. Both stocks are down more than 30% on the year.

Bernstein analyst Ian Moore said the growth has put “feet to the fire” for sportsbooks to launch similar products.

Polymarket was once the undisputed industry leader, but legal delays to its US launch saw Kalshi generate more than double its trading volume during the World Cup, according to Dune Analytics data.

Meanwhile, Rothera, the new exchange backed by Robinhood Markets (NASDAQ:HOOD) and Susquehanna International Group, reportedly attracted significant volume after launching World Cup contracts in June.

France Is Slamming the Door

French gambling regulator Autorité Nationale des Jeux (ANJ) ordered internet providers Friday to block Polymarket entirely, after French visits reportedly hit 578,751 last month despite a 2024 transaction ban.

The move follows a string of scandals.

Meteo-France filed a criminal complaint after one of its weather probes was hacked to fix Polymarket climate bets, a White House teleprompter operator was suspended for allegedly betting on the content of presidential speeches, and a US soldier faces federal charges over bets tied to the Maduro capture operation.

Germany, Italy and Spain also restrict prediction markets, according to the ANJ.

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Kalshi and Benzinga have an existing data collaboration agreement.