Digital advertising for prediction market platforms increased significantly in recent years, exposing more consumers to products that operate outside many of the marketing restrictions applied to licensed sports betting operators. The trend has drawn attention as policymakers and industry observers continue debating how these markets should be regulated.
Recent analysis from the American Gaming Association examined digital advertising related to sports betting and sports event contract platforms. The findings show that advertising from traditional online sportsbooks declined during 2025 while promotions connected to prediction market products expanded.
Digital ad impressions from licensed sportsbooks dropped by nearly 14% during 2025. At the same time, advertising impressions tied to sports event contracts increased sharply. As a result, a growing portion of sports betting–related advertising now comes from platforms that do not operate under the same state regulatory frameworks as sportsbooks.
The study also examined how often consumers encounter advertisements that fall outside existing responsible gaming standards. Roughly 15% of sports betting ads viewed by consumers in 2025 did not need to comply with state responsible gaming requirements. That share increased early the following year, with nearly half of all digital sports betting ads seen in the first two months of 2026 operating without those state rules.
Advertising Exposure and Regulatory Differences
Licensed sportsbooks function within state or tribal regulatory systems that impose specific advertising standards. These requirements often include responsible gaming messages and oversight from local regulators.
Prediction market platforms do not always face those same obligations. As advertising related to these products grows, a larger share of marketing connected to sports-related wagering reaches consumers without those protections.
Researchers also noted the style of some advertising campaigns. Digital promotions for prediction market platforms increasingly feature younger users interacting with the platforms, including imagery of students.
The advertising data was compiled using information from Sensor Tower. The research relied on Pathmatics by Sensor Tower, a digital advertising intelligence platform that tracks campaigns across multiple channels including display, video, mobile, and social media.
Ongoing Debate Over Classification
Discussion around prediction markets extends beyond advertising practices. The platforms currently operate under federal oversight from the Commodity Futures Trading Commission, which classifies them as designated contract markets rather than traditional gambling operations.
Under this structure, users trade contracts tied to real-world events. Participants can take positions on outcomes ranging from election results to financial market movements and sports events.
Some observers argue the activity resembles traditional wagering. One opinion writer who previously served on the Kansas Racing and Gaming Commission and worked with numerous lottery systems argued that the platforms closely resemble established gambling products. “To me, a prediction market looks, smells and walks like gaming,” the author wrote.
Major prediction market operators, including Polymarket, Kalshi, and PredictIt, maintain that their platforms involve financial contracts between participants rather than gambling wagers.
Questions about regulation remain central to the debate. The discussion has gained attention as prediction market platforms grow in visibility through digital advertising and as policymakers examine how the industry fits within existing regulatory systems.
Source:
“2025 Prediction Market Advertising Trends”, americangaming.org, March 13, 2026
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