Prediction markets have surged in popularity, rapidly evolving from a niche concept into a prominent topic within the betting industry. A significant driver of this transformation was the US election in late 2024, which catapulted prediction markets into the limelight, resulting in accelerated growth.
Data from H2 Gambling Capital revealed that prediction markets for March Madness hit $16 million in 2025, with projections indicating a staggering rise to approximately $530 million for the college basketball tournament in 2026.
Yurii Berest, CEO of DATA.BET, attributes this remarkable growth to various factors, including a wider selection of events for users to engage with and improved presentations of these markets. "Historically, betting has been concentrated around sports. Prediction markets extend that behavior into areas people follow closely in their daily lives, such as politics, technology, economics, and entertainment," Berest stated. "For many users, these topics are as familiar as traditional sporting events, which significantly broadens the potential audience.
"Additionally, prediction markets have become more user-friendly and engaging. Users not only bet on outcomes but also track changes in the market’s implied probabilities as new information emerges. This interaction allows the market itself to function as a form of real-time content. I believe the combination of a wider range of events and more accessible interaction has propelled prediction markets into mainstream discussions."
In April, DATA.BET launched its own prediction markets offering, emphasizing clear presentation and accessibility. By employing a "sportsbook logic," the company sought to simplify exchanges with straightforward pricing, fiat transactions, and an engaging user experience. While prediction markets remain a distinct vertical within DATA.BET's offerings, players can bet on diverse events without grappling with complex mechanics or cryptocurrency.
Berest emphasized this separation, stating, "On the surface, users interact with it through the same user experience they already know. From an operator's perspective, integration is achievable via API, eliminating the need for additional integrations."
The new subsystem involves unique pricing logic and dynamic odds based on incoming stakes and rapidly changing data. DATA.BET’s prediction market interfaces have been specifically designed for sportsbook users and utilize standard decimal odds, allowing users to engage with familiar functionalities using their existing accounts and balances, whether in fiat or cryptocurrency.
Since the launch, DATA.BET has expanded its market types and enhanced live and historical market data, aligning with broader trends marked by the rise of platforms like Polymarket. Berest remarked, "Platforms like Polymarket illustrate that users are keen on new types of content and engaging with events they follow closely, beyond traditional sports betting. This shows the potential for the market itself to be part of the user experience."
Berest advises that the iGaming industry should not simply replicate the exchange model but should focus on innovating formats and mechanics relevant to users while ensuring a seamless, familiar experience. Prediction markets exemplify how a mature industry can introduce new engagement avenues by reconsidering what can be bet on and how users interact with that content.
The architecture of prediction market products varies, showcasing different models, including peer-to-peer exchanges and fixed-odds approaches. Each model has its strengths; exchange-based markets excel in price discovery, as they reflect market activity and participant behavior, though they can add complexity for those unaccustomed to trading-style executions.
Thus, DATA.BET combines elements of both models, offering a user experience grounded in familiarity while incorporating market-driven pricing based on exchange data and liquidity calculations. This approach allows operators to introduce prediction markets without forcing users to navigate a product experience that diverges from traditional sportsbook offerings.
Real-time data and automation are pivotal in scaling prediction markets effectively, extending beyond market-driven pricing. Berest noted, "Markets can move rapidly, so management of pricing, exposure, and market workflows must minimize manual intervention. Event monitoring is crucial for markets linked to fast-paced real-world events, requiring systems to recognize when conditions have altered and when predefined resolution criteria have been met. AI can assist in these processes, but the core pricing and settlement logic must remain transparent and based on well-defined market data and resolution rules.
Long-term trust in prediction markets will rely on clear rules and consistent settlement processes. Berest asserted that settlement rules should be established before market initiation, ensuring a transparent and automated process post-event without room for discretionary interpretations. Users must be able to understand how markets resolve and have confidence in the pricing process's consistency.
Looking ahead, Berest predicts that prediction markets will become increasingly integrated into the betting landscape, evolving beyond their initial label. As this category matures, more short-duration and frequently resolving markets are anticipated, fostering a repeatable engagement pattern. He concluded, “Users will prioritize ease of understanding, competitive pricing, and the ability to place bets using their existing accounts, rather than concerning themselves with the intricacies of the underlying pricing models."
