Prediction markets have rapidly become a major force in U.S. sports betting, and Sportradar (NASDAQ: SRAD) is positioning itself as the essential data provider for this growing ecosystem. According to an August report from industry research firm Eilers & Krejcik, sports constituted approximately ~82% of Kalshi’s U.S. prediction volume in the last twelve months. The report also estimates that total monthly U.S. prediction market contract volume reached 49.0 billion contracts in July 2026, representing growth of approximately 49 times versus 0.9 billion in August 2025.
Prediction markets allow users to buy and sell contracts tied to real-world outcomes, such as whether the Knicks will win the NBA championship in 2027 or the Cowboys will make a Super Bowl run. Platforms like Kalshi and Polymarket are regulated by the Commodity Futures Trading Commission (CFTC), the federal agency that oversees futures trading, rather than by state gaming regulators. This regulatory structure gives them reach into states where regulated sports betting remains unavailable, effectively expanding the market rather than simply taking share from traditional sportsbooks. U.S. sports prediction market handle-analog accounted for 30% of combined prediction market and online sports betting handle in June 2026, up from just 1-2% a year earlier, according to Eilers & Krejcik. Handle-analog is the prediction-market equivalent of the total amount wagered.
The money is following this growth. U.S. prediction market app downloads reached a peak of more than 6 million in June 2026, led by Kalshi and Polymarket, and the firm points to exchange fundraising targets implying valuations of up to $40 billion. Even major sportsbook operators like FanDuel and DraftKings are building their own prediction market products, treating the category as an expansion lane.
Every prediction market contract must settle against the official result of a game, and that is where Sportradar comes in. The company has spent decades building the data, live odds, fan engagement, customer acquisition capabilities, and integrity tools behind sports betting and media. Prediction markets need the same toolkit. “We see prediction markets as a natural extension of our core business and a significant opportunity where Sportradar is uniquely positioned to lead, given our premium content, global scale and unmatched product portfolio,” said Carsten Koerl, Founder and CEO of Sportradar. “Prediction markets expand the U.S. total addressable market (TAM) by opening up new states, attracting new players, and increasing engagement with sports, all of which should drive higher revenue over time.”
Three factors underscore why this matters. First, official data is a must-have: every contract settles on the official result, and participants need that data in real time. Sportradar says its decades of powering sports betting through official league partnerships give it some of the broadest and deepest sports content in the industry. Second, the heavy lifting is already done. Sportradar reports its infrastructure, technology, sports rights, and industry relationships are already in place for sports betting, so serving prediction markets means applying what it has already built to new customers, allowing it to scale efficiently. Third, its market grows as the ecosystem does. Sportradar can sell beyond the exchanges to the market makers and brokers now entering the space. Those players need fast, reliable data to keep trading liquid, price contracts efficiently, and settle trades. As more of them arrive, Sportradar’s opportunity grows with them. It is a classic “picks and shovels” setup.
Importantly, Sportradar only works with authorized, registered, licensed operators and complies with all applicable regulations in every market where it operates. The company’s model does not depend on which prediction market platform ultimately comes out on top. To learn more about how Sportradar powers prediction markets, click here. This content was originally published on Benzinga. Read further disclosures here. This post contains sponsored content and was created in collaboration with a third-party partner. Benzinga is a publisher and does not provide personalized investment advice or act as a broker or dealer. This content is for informational purposes only and is not intended to be investing advice or an offer or solicitation to buy or sell any security. View the original release on www.newmediawire.com
