FGS Global has released a new scouting report highlighting how American sports fans are adapting to evolving opportunities, particularly in the realms of prediction markets and online sports betting. The New York-based advisory and communications firm conducted a comprehensive survey to examine the response of consumers to these developments following the landmark Supreme Court ruling in 2018 that lifted the federal ban on sports gambling.
The report underscores the transformative effects of the legal shift and the subsequent rise of prediction markets, which offer unique wagering opportunities on sports events.
In undertaking the study, FGS Global surveyed 2,030 sports fans via an online poll. This group comprises American adults who are interested in at least one collegiate or professional sport. The firm collaborated with research company RepData to facilitate the survey carried out between April 29 and May 8.
Despite the growing media coverage surrounding prediction markets, the survey reveals that general awareness of these platforms remains low. Only 13% of respondents indicated they currently utilize a prediction market platform, highlighting that such products are still in the nascent stages of adoption amid ongoing legal and regulatory discussions, as some stakeholders assert that these markets resemble illegal gambling activities.
Notably, 21% of those surveyed reported they had never heard of prediction markets at all. Meanwhile, an additional 33% expressed awareness of these platforms but lacked interest in participating in trading.
The report also notes that nearly half, or 43%, of respondents believe prediction markets could adversely affect society, contrasted with 28% who foresee a positive impact.
Regulatory opinions varied among survey participants, particularly regarding oversight of prediction market trading. The Commodity Futures Trading Commission (CFTC) has taken the lead as the governing body for such products; however, this responsibility has led to disputes among policymakers regarding appropriate regulatory frameworks. FGS Global's survey revealed that 26% of respondents favor regulation by an agency like the CFTC on a national level. Meanwhile, 25% support state legislation as the best regulatory approach, and 23% advocate for federal legislation from Congress. Only 7% believe that executive action from President Donald Trump is the solution. Collectively, a significant 81% expressed a desire for regulatory measures to be applied to both traditional sports betting and prediction markets, emphasizing the need for oversight in this expanding sector.
The report concludes that the current state of regulatory uncertainty poses both challenges and opportunities for companies involved in these markets. The integrity and transparency of businesses will play a critical role in shaping their reputations and defining future regulations.
In related findings, the Meredith Poll recently published a survey on North Carolina's stance concerning its sports betting market, which legalized online wagering in March 2024. This poll revealed that 47% of North Carolina respondents were unfamiliar with prediction markets, indicating a parallel trend to the results from FGS Global's research. Only 28% reported some familiarity with these platforms, and 15% considered themselves well-informed. The Meredith Poll, which included a sample of 1,022 registered voters from data derived from the U.S. Census Bureau and state voter registration, was conducted between July 1 and July 8.
