From Passive Viewing to Active Trading: Prediction Markets Redefine Sports Engagement

Prediction markets are poised to revolutionize sports engagement, with NBA star Tristan Thompson predicting their integration into broadcasts will drive higher viewership. "This is going to happen," Thompson told Decrypt, drawing parallels to how social media metrics were once incorporated into sports coverage. His remarks come as major sports leagues and platforms like FanDuel and Polymarket accelerate their foray into prediction markets, blending financial speculation with real-time fan interaction.

FanDuel, in partnership with CME Group, is launching a standalone app offering event contracts on sports outcomes and economic indicators. The platform will debut in December, providing access to sports betting in states where it is not yet legal, while transitioning to financial benchmarks in regulated markets. Amy Howe, FanDuel's CEO, emphasized the app's consumer protection tools, including deposit limits and educational resources, to ensure responsible trading. Flutter Entertainment, FanDuel's parent company, highlighted in its Q3 earnings call that the app could leverage existing marketing budgets to target regions like California, where sports betting is restricted.

Meanwhile, Polymarket has emerged as a key player in the space, securing a multi-year deal with UFC parent company TKO Group Holdings to integrate real-time prediction markets into live broadcasts.

The partnership introduces a "Fan Prediction Scoreboard," visualizing global sentiment during fights and transforming passive viewership into active participation. UFC CEO Ariel Emanuel called it a "new dimension of fan engagement," while Polymarket CEO Shayne Coplan noted the platform's ability to let fans "trade like a stock throughout the fight" as momentum shifts. The collaboration extends to Zuffa Boxing, with plans to debut in 2026, and includes social media series predicting post-fight matchups according to a report.

The NHL also entered the fray, becoming the first major league to partner with Polymarket and rival Kalshi. This follows DraftKings' acquisition of prediction market firm Railbird, though the latter's focus remains on finance and entertainment. Google and Yahoo Finance have further legitimized the trend by integrating Polymarket's probability data into their platforms, reflecting a broader acceptance of prediction markets as a financial tool.

Regulatory challenges persist, however. While prediction markets differ from traditional sports betting by allowing early exits, courts are still clarifying their compliance with state gambling laws. Despite this, Thompson argues they will enhance sports coverage, with dynamic odds displayed on-screen to reflect real-time action-such as a UFC knockout in five seconds or an NBA player's performance swing. The American Gaming Association reported $99 billion in sports betting wagers in the first eight months of 2025, a 12% increase year-over-year, underscoring the sector's growth potential.

As platforms like FanDuel and Polymarket expand, they face competition from established operators like Robinhood and DraftKings, which have also entered the prediction market space. Yet, the unique value proposition-combining financial speculation with live sports engagement-positions prediction markets as a disruptive force. Thompson's endorsement and the rapid pace of partnerships suggest this evolution is not just inevitable but already underway.