Citizens said prediction markets are unlikely to compete with sportsbooks over the long term. The investment bank said the sector’s current product does not offer an advantage over traditional operators.
The assessment may inform investors’ views of prediction markets’ competitive position against sportsbooks.
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Jdigital published an open letter setting out its position on the reform of Spain’s Gambling Regulation Act 13/2011, a process led by the DGOJ. The association said three working groups will develop proposals, with their findings due in a joint document in early 2027.
Citizens Equity Research analyst Jordan Bender argues that concerns about prediction markets diverting activity from traditional sports betting may be overstated. Bender presented the assessment in a report to clients.
Multi-event trading is developing as a possible competitor to traditional sports betting accumulators. The format lets users combine a sports event with markets such as financial, political or weather events, the outlet said. Prediction markets have grown in popularity since 2024, mainly in the US, it added.
Citizens JMP Securities research published on 28 May found that users of prediction market combo bets had a median return on investment of minus 18%, compared with minus 12% for traditional sportsbook parlays. The report used anonymised activity data from Juice Reel and said Kalshi combos accounted for 22% of its total volume in April.
It was reported that Rush Street Interactive chief executive Richard Schwartz said the company has no plans to enter sports prediction markets. He acknowledged that the operator applied for designated contract market licensing in May.