Prediction markets in the United States saw a record surge this July, driven by the fervor of the FIFA World Cup. The average daily trading volume soared to nearly $2 billion, marking a 9% uptick from June, according to a report by Jefferies. Though the World Cup was the headline act, analysts pointed to steady gains in non-sports markets, highlighting a sector whose appeal is broadening beyond just major sporting events. Platforms outside the big players contributed $161 million in average daily volume, though these smaller operators saw their market share dip to 8% from June’s 10%.
In This News
Rothera and New Entrants
Rothera, a platform born out of a partnership between Robinhood and Susquehanna International Group, has been making waves. But the platform reported a 24% increase in average daily volume, hitting $70 million in July. However, activity across the month varied as World Cup contracts wound down. Peaks hit $137 million in late June but plummeted to $8 million by the month’s end. Industry observers will note that this variance is common following major event cycles.
Sports Markets Dominate
Sports, unsurprisingly, remained at the forefront. During the tournament, sports trading experienced a 12% rise, reaching $1.33 billion daily—76% of all July’s trading activity, up from 67% in June. But non-sports markets also advanced, climbing by 5% to $424 million in daily volume. This growth indicates traders’ increasing interest in speculating on global political and economic events, even during peak sports seasons.
Massive World Cup Trading
The World Cup was the most lucrative event in the industry’s history, generating about $20 billion in prediction market trading volume, as reported by Jefferies with data from Chainanalysis. This dwarfs the $3.6 billion previously associated with the 2024 US presidential election. Besides trading, July was rife with major corporate moves. Fanatics closed its acquisition of a regulated exchange and clearinghouse from BGC Group, enabling internal exchange operations. Reports have also hinted at a potential collaboration between Crypto.com and Robinhood, though nothing is confirmed.
IG Group’s Bold Move
On July 30, IG Group announced its acquisition of prediction market operator Underdog for $1.3 billion, signaling increased investor confidence in the fast-growing market. This isn’t IG Group’s first major acquisition, but it underscores the sector’s rapid expansion and appeal to major financial players. The coming months will likely see continued activity. But the board is expected to review new applications in Q4, potentially opening the door for more entrants.
David Harrison stands tall in gambling journalism, marrying his firsthand casino experiences with a deep understanding of betting psychology. His articles transform complex gambling jargon into engaging tales of strategy and chance, making the world of betting accessible and enjoyable. David’s knack for narrative extends beyond print, making him a sought-after speaker on gambling trends and future bets. In the realm of gambling, David is both a scholar and a storyteller, captivating readers and listeners alike.
