Prediction markets are projected to reach $40 billion in volume by 2025 with a 400% growth

Source: Yellow Original Title: It is projected that prediction markets will reach $40 billion in volume by 2025 with a 400% growth

Original Link: Prediction markets are projected to reach $40 billion in transaction volume by 2025, representing a 400% year-over-year growth from approximately $9 billion in 2024.

Regulatory clarity and mass distribution through platforms like Robinhood are driving expansion beyond native crypto audiences. Analysts note that the sector is evolving from simple betting platforms to institutional information infrastructure.

What happened

Foresight Ventures published a sector report highlighting the rapid expansion of prediction markets. The sector is positioned to eventually rival the $300 billion global sports betting industry.

Certain prediction platforms dominate the market with approximately 90% of trading volume. Intercontinental Exchange, owner of the New York Stock Exchange, invested $2 billion in a prediction platform valued at $9 billion.

The deal indicates institutional recognition of prediction market data as high-quality financial signals. The integration of prediction platforms with Robinhood in August 2025 provided access to 27.4 million brokerage accounts with funds.

The global user base is expected to expand three to four times, reaching approximately 15 million users by year-end. Sports contracts currently account for 70% of total volume.

Why it matters

Major financial institutions are exploring prediction market probabilities for risk models, sentiment analysis, and event-linked products. Bloomberg is studying the integration of real-time probability data into its platform.

Analysts describe the shift as prediction markets becoming “information engines rather than just betting platforms.” Operators could use event probabilities in the same way they use prices in traditional limit orders.

The sector is moving from mere speculation to a new layer of financial and informational infrastructure that reflects real-time sentiment and collective intelligence.

Some prediction markets operate as federally regulated markets under regulatory supervision, enabling nationwide distribution. Regulatory compliance combined with mass distribution is surpassing native crypto network effects in the U.S. market.

Research firm Eilers & Krejcik projects prediction markets could reach $1 trillion in annual trading volume by the end of the decade.