Prediction Markets: How You Can Get Involved in 2026

Prediction markets are riding the wave of popularity that sports betting enjoys. And if you’d like to get involved, you’re in luck — we can point you to the best platforms out there! 

With prediction markets, you’re testing your knowledge of the world, making trades on major events and outcomes to earn some cash. And of course, sports betting is an excellent alternative to prediction markets, but with clear odds tied to just live sporting events. 

Listed below are the platforms we recommend to anyone interested in prediction markets. This is everything available in your area: 

Prediction markets are similar to sports betting: you predict the outcome of an event. But the main thing to remember is that it branches off into other sectors and industries. 

You make trades on real events — election outcomes, Supreme Court rulings, etc. — and can earn money from it. Pretty interesting, right? 

And if you already follow everything that’s going on in the world, you’re already prepared to take part in the action.

But remember that you’re also not betting on anything. You’re buying and selling “contracts” that pertain to real events. The prices range from $0 to $1, and these numbers also represent the implied probability. 

Prediction markets come with risks and involve a great deal of strategy, of course. But what also makes them unique is that you’re not going against a bookie. It’s you and other traders who determine the prices — market consensus plays a huge role in what you win/earn. 

The United States federal government regulates everything via the Commodity Futures Trading Commission (CFTC). It categorizes prediction markets as “contract events” that are outside the realm of sports betting and online gambling.

There’s a lot of contention around how to handle the situation legally. Things are evolving constantly, with gambling regulators, operators, and stakeholders seeking clarity. The main concern is to settle jurisdictional disputes and establish rules/revenue structures. 

Believe me when I say this is an evolving situation. Legal battles are unfolding between individual states (New Jersey, Nevada) and the various platforms (Kalshi, Coinbase). 

And as time goes on, there’ll be key rulings in the US court system regarding prediction markets. This will have a major impact on their legality and market viability in every state. 

The legal uncertainty surrounding prediction markets can feel risky for certain players. But in the meantime, you can always explore other options. You can play real money casino games or join a social casino — what's available depends on where you live. Legal online gambling is available in PA, MI, WV, and NJ. 

Prediction markets are very expansive in terms of what they cover. And that’s a good thing because your options are no longer limited to just sports. The coverage extends to a variety of sectors, which include the following:

• Law and Politics. Prediction markets let you trade on election results and various court cases.
• Finance and Economics. You can trade on how major companies are performing and GDP growth year over year. 
• Popular Culture. The outcomes of major cultural events (involving the Oscars, Golden Globes, etc.) are also available as prediction markets. 

With prediction markets, you’ve got to gain an edge and limit your risk, just as you would do with sports betting. Here are ways in which you can enhance your success: 

For as similar to sports betting as prediction markets can be, there’s an entirely different language. For legal reasons, they avoid words like “bets” and “wager,” so here is a glossary of relevant terms:

• Liquidity: Liquidity refers to the fairness of the price offered to traders who’re buying and selling contracts. High liquidity suggests that there’s more collective information out there determining the market’s accuracy/probability. 
• Contract Pricing: This is the tradable price of any prediction market, which determines how much money you’ll earn (if you’re accurate). The price affects how much money you’ll invest in a trade, and it can change depending on market consensus. 
• Exchange: An exchange is the platform facilitating various trades that involve prediction markets. Unlike bookies, these platforms don’t determine the prices. 
• Slippage: This happens when the price you trade at is different from what you expect it to be. Slippages can also indicate that there’s minimal liquidity in the market. 
• Settlement: When a market closes, it’s referred to as a settlement. The outcome of an event is final, and profits/losses become official. 
• Market: This is an area of trading that revolves around a real-world event with a definitive outcome. Markets come with contracts, which have their own distinct rules for resolving trades. 

We understand why people often equate sports betting with prediction markets. But there are several key differences that we believe are worth pointing out.