Prediction market trading volume soars past $2B for a single week amid a busy sports schedule

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Prediction market firms Polymarket (POLYMARKET [https://seekingalpha.com/symbol/POLYMARKET]) and Kalshi (KALSHI [https://seekingalpha.com/symbol/KALSHI]) saw a boom in trading volume related to sports events last week, according to data from Dune Analytics. Notional trading volume exceeded $2 billion on the two platforms for the week that ended on October 19, which is even higher than the levels around the U.S. election last year.

MLB playoffs and the start of the NHL hockey season were part of a busy sports schedule for the record-setting week.

The recent trading volume growth over the past two months has been driven in large part by a surge of interest in NFL and college football contracts. Sports in general attracted more than 60% of all the trading volume on Polymarket (POLYMARKET [https://seekingalpha.com/symbol/POLYMARKET]) and Kalshi (KALSHI [https://seekingalpha.com/symbol/KALSHI]).

Kalshi's (KALSHI [https://seekingalpha.com/symbol/KALSHI]) new partnership with Robinhood Markets (HOOD [https://seekingalpha.com/symbol/HOOD]) is considered a major factor in bringing in new users to the prediction market industry.

Last week, Needham analyst Bernie McTernan defended the firm's bullish positions on DraftKings (DKNG [https://seekingalpha.com/symbol/DKNG]) and FanDuel (DUEL [https://seekingalpha.com/symbol/DUEL]) despite the threat of prediction markets.

"We think OSB operators, particularly DKNG and FLUT offer a better product than prediction markets currently, namely offering more markets and better personalization," highlighted McTernan. It was noted that prediction market operators may be attracting significant volume from unregulated markets and from people under 21 across the U.S., who can't use sports betting apps. "We do not think volume growth for Kalshi means it has to be coming from OSB operators," he wrote.

Prediction markets will be a major topic of the earnings conference calls for DraftKings (DKNG [https://seekingalpha.com/symbol/DKNG]) and Flutter Entertainment (FLUT [https://seekingalpha.com/symbol/FLUT]) when they report in early November.

MORE ON PREDICTION MARKET PLATFORMS

* Kalshi trading volume surges amid high drama of Giants-Broncos NFL game [https://seekingalpha.com/news/4505532-kalshi-trading-volume-surges-amid-high-drama-of-giants-broncos-nfl-game]
* Fading the impact of Kalshi: DraftKings and Flutter are defended at Needham [https://seekingalpha.com/news/4505161-fading-the-impact-of-kalshi-draftkings-and-flutter-are-defended-at-needham]
* Financial information for Kalshi Inc [https://seekingalpha.com/symbol/KALSHI/income-statement]
* Financial information for Polymarket Inc. [https://seekingalpha.com/symbol/POLYMARKET/income-statement]