Sportsbooks Can’t Compete
While prediction markets and sportsbooks both allow customers to win money by predicting the outcome of an event, that is where the similarities end. Betting sites are subjected to heavy taxes and regulations, which vary between states. While these allow for a competitive market among operators, that isn’t the case when compared to sports prediction markets.
Prediction market operators aren’t subjected to any state taxes, allowing them to retain far more of their profits. They also offer a lower minimum age, the ability to use cryptocurrency, and very few regulations for bettors. Sportsbooks can’t legally come close to matching those offerings, leading many customers to make the switch.
Legal Battle Rages On
As popular as sports prediction markets have been, the industry has been under fire from tribes and state gaming regulators. Many lawsuits have been filed, arguing that these controversial markets are a clear form of sports betting. While the industry continues to thrive, the opposition seems to grow larger each day.
With the US hosting the majority of the 2026 World Cup matches, soccer betting sites have plenty of reason to support the opposition. The influx of international visitors is expected to lead to a massive spike for sportsbooks, but that might not be the case if sports prediction markets continue to grow.
What Visiting Gamblers Should Expect
While the US Supreme Court paved the way for legal sports betting, no federal framework for the industry was set up. Instead, each state that legalized sports betting was able to create its own rules and regulations. That means visiting bettors will need to check local laws before placing any wagers on the World Cup (or other events).
Visitors should also be wary of illegal operators. Many states have begun to crack down on these sportsbooks, but lack the legal power to enforce any penalties against them. While many have chosen to leave the US, they may return ahead of the highly anticipated tournament. We recommend verifying that a sportsbook is licensed by the state you are visiting before placing any wagers.
