Prediction Market Customers: Traders, Casuals, Sportsbooks?
The long-term customer base for prediction markets may include stock traders, casual bettors, and even legal sportsbooks. CEOs of prediction market platforms, who also serve as media influencers, continue to shape this emerging form of sports betting while federal and state courts evaluate its legality.
The ultimate success depends on whether customers develop a sustained interest, provided the legal system permits it. It remains uncertain if casual bettors, who often avoid losses and enjoy bonus bets, will engage with prediction market apps—which currently lack such incentives—just ten months into their rise.
Perhaps only savvy traders, tech enthusiasts, and high-stakes bettors will have the resources and knowledge to benefit from this distinctive form of betting, different from state-regulated sportsbooks.
“I think what you’re going to find, generally speaking, is that a sportsbook player is more casual and a prediction market trader is more sharp,” said Daniel Zimmermann, co-founder and CEO of the Verse prediction game, in an interview with InGame.
Alex Kane, founder and CEO of Sporttrade, agreed this division is “largely correct” but noted that prediction markets also offer appealing features for casual bettors. “Some people are going to want the Ferrari. When they hit the accelerator, the car speeds up quickly,” he explained. “And some people are cool with the Ford Explorer sort of thing.”
Summary: Prediction markets may attract a mix of sharp traders and casual bettors, but their long-term appeal depends on legal acceptance and customer willingness to adopt a less conventional betting style.