SOFTSWISS, an international software provider based in Malta, has released a research report examining prediction markets and their expanding role in the iGaming sector. The study, “Prediction Markets: From Trading to Betting,” outlines how the category has developed from early betting practices into a large-scale digital market handling significant monthly volumes.
The report tracks prediction markets from historical origins, including 15th-century papal election wagering, through to modern platforms processing billions in monthly activity. It highlights major platforms such as Polymarket and Kalshi, alongside early iGaming-native launches in 2025 and 2026. It also reviews regulatory frameworks across North America, Latin America, Europe, Asia, Africa, and Oceania, while offering guidance for operators considering market entry.
Data sources include Dune, Keyrock, TRM Labs, and Blask. The study covers demand trends in the US, UK, Ireland, Australia, and Canada, and compares trading-based models with betting-style structures used in iGaming environments.
Rapid Market Expansion and Sports Dominance
SOFTSWISS reports strong growth in prediction markets, with monthly volumes rising from $32 million in January 2024 to $12.6 billion in January 2026.
Alexander Kamenetskyi, Head of Operations at SOFTSWISS Sportsbook, said: “Monthly volume grew from $32m in January 2024 to $12.6bn in January 2026 – a scale shift the industry can no longer afford to dismiss. That is no longer a trend – it is a fully formed product category. And critically, almost none of that volume has flowed through traditional operators.”
Sports emerged as the most profitable category on platforms like Kalshi and Polymarket. Between January and March 2026, four of the ten highest-earning wallets on Polymarket focused primarily on sports, generating $22 million in profit. The report notes this overlap as a direct opportunity for sportsbook operators.
Bernstein projections cited in the study estimate the market could reach $1 trillion by 2030, with 370% growth expected by the end of 2026.
Regional Growth and Operator Opportunities
The report identifies the US and UK as the fastest-growing regions, with Canada and Australia also showing steady expansion. Regulatory frameworks vary widely across jurisdictions, shaping how operators approach entry and compliance.
SOFTSWISS also details structural differences between trading-style prediction markets and fixed-odds betting models, focusing on product design and operational compatibility within iGaming systems.
SOFTSWISS Launches Integrated Prediction Product
The report follows the launch of SOFTSWISS Prediction Markets, a product enabling wagering on events in politics, economics, sport, and entertainment. The fixed-odds format aligns with existing iGaming infrastructure and does not require major system changes.
The solution is available as an iFrame widget or full sportsbook integration, with deployment possible in two to three days for existing partners.
Kamenetskyi added: “Prediction markets help operators create more consistent, evergreen player engagement beyond the traditional sports calendar.”
SOFTSWISS positions prediction markets as a growing standalone category with increasing relevance for operators seeking new engagement and revenue channels.
Source:
“Prediction Markets: From Trading to Betting”, softswiss.com, May 2026
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