Alex Korsager From Casino.org on the Future of Prediction Markets

It's hard to miss the buzz around prediction markets right now. Fueled in equal parts by fascination and controversy, the emerging market is garnering column inches, sparking lively discussions, and attracting a huge variety of participants. But why is this speculative form of wagering undergoing a surge in popularity now? And is this unique form of event betting here to stay?

We spoke to an expert who could tell us more about how the prediction market landscape is changing in the US, and what the future holds for the flood of financial exchanges emerging at the moment. Alex Korsager is the Chief Gaming Officer at Casino.org. With a decade of experience in the iGaming industry, he has seen trends come and go, alongside the rise of global markets, technological developments, and a regulatory revolution in betting and gaming.

• Hi Alex, it's great to talk to you. Could you start by giving us some background on why prediction markets have burst onto the scene in such a big way?

"Hey, it's good to chat with you too! So, there are several reasons for this. First off, prediction markets aren't regulated in the same way as sports betting. Prediction markets operate under federal commodities and derivatives regulations rather than state gambling laws. As a result, operators can legally offer prediction markets in US states where sports betting isn't legal.

It's no coincidence that this has happened during the crypto era. Crypto-based markets, like Ethereum, run on blockchains. It's now easier to build decentralized prediction markets using this technology. As a result, anyone can participate globally and isn't subject to the same legal requirements as previous models.

I think one of the biggest factors is novelty. Gambling on real-world events is exciting, and it makes people feel more involved and interested in current affairs, whether that's elections or who will win an Oscar. Having skin in the game is really engaging. Couple that with the dynamism of prices that shift in real-time as new information comes in, and I think you're onto a winner."

• There is some controversy around prediction markets. Is that something that consumers need to be wary of?

"There are some legitimate issues around what should and shouldn't be bet on, and it's always worth treating any form of gambling or investing with caution. This absolutely needn't scare consumers off getting into idea futures, though. That said, I would always advise consumers to inform themselves first!

At Casino.org, we thoroughly review operators and their platforms to help our readers choose safe sites. Our team has compiled lots of useful guidance on prediction markets, including where to find the best platforms and bonuses. It's always worth keeping your wits about you when you're picking a new platform and spending your hard-earned cash."

• What sets prediction markets apart from sports betting?

"On the face of it, there is a clear overlap. You bet on an outcome, and if you're right, you get paid out. What's different is the underlying structure. In a sportsbook, you're betting against the house. The bookmaker controls the odds and limits, and the price you pay includes a built-in margin.

Prices in prediction markets reflect probabilities, and you're trading against other participants. It's more like a marketplace, where buyers and sellers set the prices. You'll also find that you can wager on more than just sports. Yes or No Contracts tied to real-world outcomes in politics, economics, and pop culture are bought and sold, and at the end, the platform is simply there to settle the result."

• How can our readers learn to choose the best prediction markets?

"There are a few key things that are worth bearing in mind when you are choosing a prediction platform in the US. First of all, take a look at which market categories a platform provides, and see if this aligns with what you're looking for. Some platforms cater primarily to sports, while others offer a wide variety of real-world outcomes.

Not every platform is available in every state, so you will have to bear in mind your location when making your choice. This is because the rules around prediction markets vary from state to state. Check the rules before creating any new accounts, and look at the best options where you are at Casino.org.

There are also bonus offers to take into account. A good welcome bonus is a must, but it doesn't stop there. Pick a site that will reward your loyalty with continued perks that give your trading a regular boost. Underdog is one platform positively rated by Casino.org that's offering new sign-ups who play $5 a tidy $75 in bonus entries. Readers can learn more about how the platform works and find further Underdog promo codes in our handy guide."

• Do you have any info for people who are curious about prediction markets, but don't know where to start?

"We can split most prediction markets into two basic types. There are pros and cons to each, but knowing these facts is really useful when it comes to choosing a platform.

Order book apps are a bit like trading exchanges, where you can look at bids and ask prices and place limit orders. Kalshi is a well-known platform that falls into this category. On the plus side, this type of platform gives users more control over pricing. However, they are harder to get to grips with for those new to prediction markets and work best when there are enough participants to match orders.

The second type is the buy-and-sell interface. These are different because users don't trade directly with other participants. Instead, you buy and sell from the platform itself, which acts as an automated market maker. This means that you don't have to wait for another trader, and you can always buy or sell instantly."

• Any last tips for our readers?

"As with gambling, it's a good idea to start small. Give yourself time to learn the ropes, and don't put all your eggs in one basket. No matter how confident you are, no bet is really a sure thing, and there's always going to be a degree of financial risk. It's also worth knowing that any gains you do make may be taxable, so it's worth getting in touch with a tax professional if things go well. Take regular breaks and give your head space to think. It's useful to set a funding cap so that you don't go over budget."

By GamesAndCasino