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Prediction Markets B2B Infrastructure 14 min read • March 2026

Prediction Markets Lack Native Sports Tooling: The $24B B2B Opportunity

87% of Kalshi’s $24B 2025 volume was sports contracts — yet no PM platform has a sports CRM, betslip UX, or player lifecycle tooling. The B2B gap between financial exchange infrastructure and sports operator needs is structural, growing, and unserved.

By the Metrics
87%
of Kalshi’s $24B Volume Was Sports
3 of 7
Major US Leagues Have PM Data Deals
$13B/mo
Global PM Volume by Late 2025
Problem
Prediction markets are effectively sports betting platforms built on financial exchange infrastructure — with no native sports CRM, player engagement, or retention tooling.
Approach
We mapped B2B vendor activity across data providers, exchange infrastructure, compliance, and CRM to identify where the sports-native tooling gap sits.
📈
Outcome
A clear middleware opportunity exists between sports betting B2B infrastructure and PM exchange infrastructure — with the 2026 FIFA World Cup as the first major stress test.
in 𝕏

prediction markets crossed $13 billion in monthly global volume by late 2025 — a more than tenfold increase from 2024. Kalshi alone processed $24 billion in annual trading volume, with 87% of that volume coming from sports event contracts. Robinhood’s event markets reached $300 million ARR, described internally as the company’s fastest-growing segment. Kalshi’s Super Bowl LX volume surged 2,700% year-over-year to exceed $1 billion in a single event.

And yet: not one major prediction market platform has a sports CRM, a betslip-style UX, player segmentation, reactivation triggers, event-driven engagement automation, or responsible gambling guardrails equivalent to what any mid-tier traditional sportsbook runs as standard infrastructure. The fastest-growing segment in US fintech is, operationally, a sports product being served by financial trading software built for a different user entirely.

This article maps the B2B tooling landscape across prediction market exchange infrastructure, data providers, compliance vendors, and operator-facing CRM — and identifies where the sports-native gap sits, why it persists, and why the window to fill it is narrow.

Sports Dominate Prediction Markets — But the Infrastructure Doesn’t Know It

When Kalshi received CFTC approval to list sports event contracts in January 2025, it launched as a niche expansion of a political and financial prediction platform. By December 2025, sports contracts were generating $331 million in a single month and accounted for 90% of total trading volume during football season. The platform had, functionally, become a sports product — without a single sports-native operator feature to show for it.

87% of Kalshi’s entire $24B 2025 trading volume was sports contracts — on a platform with no native sports CRM, betslip UX, or player lifecycle tooling

The numbers tell a consistent story across every major PM operator. Robinhood’s event markets hit $300 million ARR as its fastest-growing segment, driven overwhelmingly by sports contracts, while users navigate a generic financial trading interface designed for equity and options traders. Kalshi’s March Madness volume reached $208 million for a single tournament. Its valuation doubled during 2025 to $11 billion, supported by a $1 billion December fundraise — capital directed toward exchange infrastructure, not operator-facing sports tooling.

The paradox is structural. PM platforms were built and regulated as financial exchanges. Their UI paradigm is the trading terminal: contract price, order book, position management. Sports bettors expect moneyline odds, event cards, same-game parlays, and favorites-first sorting. The gap between what users encounter and what converts them into retained, high-LTV bettors is the entire vocabulary of sports operator UX — none of which any PM platform has built, and none of which any current B2B vendor offers as a packaged solution for PM operators.

Kalshi 2025 Volume
$24B
Total annual trading volume; $3B non-sports, $21B sports contracts
Robinhood Event ARR
$300M
Fastest-growing Robinhood segment, driven by sports; zero sports-native engagement features
Super Bowl LX Growth
2,700%
Year-over-year volume increase to $1B+ — at scale that exposes the absence of event-driven operator tooling

What B2B Tooling Actually Exists — and What’s Missing

The prediction market B2B market is active but almost entirely focused on exchange-layer infrastructure — the plumbing beneath the operator, not the tooling facing the user.

NinjaTrader Connect, launched in March 2026 a year after Kraken’s $1.5 billion acquisition, provides exchange connectivity infrastructure for PM operators building on crypto-adjacent rails. Polymarket’s acquisition of Dome, a unified prediction market API backed by Y Combinator, addresses exchange aggregation and order routing. ICE and NYSE committed $2 billion into Polymarket, signaling institutional conviction in exchange-layer infrastructure buildout. Polymarket’s $112 million acquisition of QCX, a CFTC-registered derivatives clearing organization, adds compliance infrastructure at the clearing layer.

What is absent across all of these transactions is operator-facing sports tooling: the CRM hooks, player segmentation models, event-driven engagement triggers, betslip UX, and lifecycle management tools that traditional sportsbook operators have used for a decade to convert casual sports fans into retained bettors.

B2B Layer Vendors Active Sports-Native Tooling?
Exchange / clearing infrastructure NinjaTrader Connect, QCX (Polymarket), Dome API No
Turnkey PM platform (B2B) TRUEiGTECH No
Sports data / settlement Sportradar, SportsDataIO Partial (data only)
Compliance / surveillance Palantir + TWG AI (Polymarket, bespoke) No
Player CRM / engagement None Unserved
Betslip UX / odds formatting None Unserved

TRUEiGTECH unveiled an enterprise-grade turnkey prediction market platform for B2B operators in early 2026, signaling growing vendor awareness of the operator tooling gap. But even this most operator-facing of the current vendors does not address sports-specific engagement: no bettor segmentation, no event CRM, no lifecycle triggers, no responsible gambling guardrails calibrated to sports betting behavior patterns.

Traditional sports betting B2B vendors — odds compilers, risk management platforms, player CRMs like Optimove and Braze integrations — have not pivoted to serve PM operators. The regulatory classification difference (CFTC-regulated financial exchange vs. state-regulated sportsbook) has been enough to keep the two ecosystems separated, even as their end users have become functionally identical.

League Data Integration: Three Deals Signed, Four Major Leagues Waiting

Sports prediction markets require two categories of data infrastructure that traditional financial derivatives do not: official event settlement data (who won, what was the score, did the player score the touchdown) and integrity monitoring (is the trading pattern on this contract consistent with inside information about the outcome).

As of early 2026, only three major US sports leagues — the NHL, MLS, and UFC — have established formal data frameworks that allow official data to flow to prediction market exchanges for settlement and integrity purposes. The NFL, NBA, MLB, and NCAA — the four largest sports by betting handle in the US — remain unaligned with PM data infrastructure.

3 of 7 major US sports leagues have formal prediction market data agreements — NFL, NBA, MLB, and NCAA remain unaligned, leaving settlement and integrity tooling unbuilt

Sportradar is the primary B2B data infrastructure play in the PM space, holding official data rights for the NHL, MLS, and UFC. Its 2025 revenue reached €1.29 billion, up 17% year-over-year, with PM revenue in 2026 expected to contribute “tens of millions” — material but still excluded from formal financial guidance, indicating the PM data market is being established rather than captured. Sportradar’s acquisition of IMG Arena added 70+ rights holders and coverage of over one million annual events, providing the long-tail sports settlement infrastructure that PM operators targeting niche events will need. But Sportradar’s PM offering addresses data delivery and integrity monitoring — not operator engagement tooling.

SportsDataIO has positioned itself as an early mover explicitly targeting prediction market platforms with settlement and resolution data, probability APIs, and analytical modeling across 13+ sports. It is one of the few B2B vendors that has publicly acknowledged PM operators as a distinct customer segment and built product around their specific data needs. The gap it does not address is identical to Sportradar’s: operator-facing CRM, player lifecycle management, and sports-native engagement tooling remain unserved.

The settlement problem compounds at scale: When NFL, NBA, and MLB eventually reach PM data agreements, the volume of events requiring fast, accurate, official settlement data will increase by an order of magnitude. Operators who have not built or contracted for this infrastructure will face operational failure at exactly the moment their platforms are most visible.

Polymarket Had to Build Integrity Tooling From Scratch — Nobody Should Have To

In 2025, Polymarket partnered with Palantir and TWG AI to build sports market surveillance infrastructure. The requirement was straightforward: monitor trading patterns on sports event contracts for anomalies consistent with inside information about game outcomes, player injuries, or officiating decisions. This is a solved problem in traditional sports betting — every major sportsbook runs integrity monitoring via vendors like Sportradar, IBIA, or in-house systems refined over years of PASPA-era development.

Polymarket built it from scratch because no native B2B solution existed for PM operators. The bespoke approach — a $112 million acquisition of QCX for clearing plus custom Palantir surveillance tooling — represents the compliance tax that every new PM operator with serious sports volume will face unless a standardized B2B layer emerges.

The compliance challenge extends beyond integrity monitoring. PM operators now face a layered regulatory environment where jurisdictional product design, responsible gambling obligations, and AML/KYC requirements vary by state and by the specific CFTC designation of each contract type. An operator launching in 2026 without B2B compliance tooling that abstracts this complexity will spend more on regulatory infrastructure than on product development.

The 2026 FIFA World Cup — 48 teams, 104 matches, running from June through July — is the first major stress test for PM compliance infrastructure at scale. It will expose every gap simultaneously: settlement speed, KYC/AML throughput at peak volume, responsible gambling triggers for high-frequency bettors during a multi-week tournament, and integrity monitoring across dozens of markets per match. Operators who have not solved these infrastructure problems before June 2026 will solve them publicly and expensively during the tournament itself.

The $165B context: US sportsbooks handled approximately $165 billion in sports wagers in 2025, representing nearly a decade of post-PASPA infrastructure maturation. That ecosystem has solved, at industrial scale, the compliance problems that PM operators are now encountering for the first time. The B2B solutions that solved them for sportsbooks have not been adapted for the PM regulatory context — yet.

A Dozen Operators, No Shared Infrastructure — The Middleware Opportunity

The current PM operator landscape includes Kalshi, Robinhood, Polymarket, PrizePicks, Underdog, FanDuel (via partnership), DraftKings (via partnership), Fanatics, and Betr — each building separate PM products without shared B2B infrastructure standards, vendor relationships, or operator tooling protocols. This is not a market that has evaluated sports-native middleware and rejected it. It is a market that has not yet been offered it.

The capital concentration in this space is significant: Kalshi’s $11 billion valuation (doubled during 2025) and $1 billion December fundraise signal that operators have the budget to solve infrastructure problems. They are currently solving them through acquisitions and partnerships — Polymarket buying QCX, DraftKings and FanDuel entering PM through league partnerships — rather than via purpose-built B2B sports PM tooling. This confirms the gap is unserved by existing vendors, not that operators have chosen to build internally as a strategic preference.

Winner-takes-most dynamics at the exchange layer — liquidity concentrating on the deepest markets — mean that B2B tooling vendors who operate above the exchange layer have structurally durable positioning. A vendor who delivers sports-native operator capabilities (CRM, personalization, compliance abstraction) as a layer on top of any exchange has no dependency on which exchange wins. Every operator needs what they provide, regardless of exchange preference.

The fragmented operator landscape creates compounding inefficiency at exactly the right moment: when the market is growing fast enough to make the inefficiency expensive, but early enough that no incumbent B2B player has locked in the standards. This is precisely the market structure that historically produces a dominant middleware layer. The early sports betting B2B vendors who built operator tooling between 2018 and 2021 — the first three years after PASPA repeal — captured revenue shares they still hold today.

What Sports-Native PM Tooling Actually Needs to Cover

The tooling gap is not abstract. It maps to specific, concrete operator needs that every PM platform with serious sports volume will eventually have to address — either by building, buying, or contracting for them.

Odds Formatting and Event Display

PM platforms display binary contract prices — a “Yes” contract trading at $0.62 means an implied 62% probability. Sports bettors expect moneyline odds (−150 / +120), point spreads, and totals displayed in familiar format. Converting between probability-based contract pricing and sports betting odds formats, and presenting event markets in sports-native UI conventions, is a solved technical problem — but one that no current PM platform has implemented and no B2B vendor offers as a packaged module.

Player Lifecycle Management

No PM platform has bettor segmentation, reactivation triggers, deposit nudges, or responsible gambling guardrails equivalent to what a mid-tier sportsbook CRM provides. The entire infrastructure of player lifecycle management — identifying high-value bettors, reactivating churned users, triggering engagement around upcoming events relevant to individual betting history, flagging problem gambling indicators — is absent from the PM operator stack. Traditional sportsbook B2B CRM vendors have not adapted their products for PM regulatory and UX contexts.

Event-Driven CRM Triggers

Real-time in-play events — an injury, a weather delay, a score change that shifts a game’s expected final outcome — are the natural engagement moments around which sports CRM automation is built. PM platforms currently ignore them entirely. An operator who can trigger a push notification to a user who has bet on a team’s game, at the moment a key player exits with an injury, is delivering the product feature that converts casual users into retained, high-frequency bettors.

Settlement and Resolution Infrastructure

Accurate, fast settlement data across 13+ sports is the foundational operational requirement for any PM sports operator. SportsDataIO is one of the few vendors explicitly targeting this need. Sportradar holds official data rights for aligned leagues. The gap is that neither vendor bundles settlement data with the operator engagement layer — leaving operators to integrate data feeds and build their own engagement automation separately.

Compliance Abstraction

A B2B layer that handles jurisdictional rules, AML/KYC triggers, responsible gambling flags, and CFTC reporting requirements across US states removes the single largest barrier to PM operator launch and scale. No current vendor provides this as a packaged solution for sports PM operators specifically. The $500 billion-plus in US sports betting handle since PASPA repeal has produced mature compliance tooling for the sportsbook context — none of it has been adapted for the PM regulatory environment.

Why the Window Opens Now — and Closes Fast

Sportradar’s PM revenue in 2026 is expected in “tens of millions” — real, but still excluded from formal financial guidance. This is a precise signal that the PM B2B data market is being established in 2026, not already captured. The same is true across every other B2B layer: vendors are entering, standards are not yet set, and no incumbent has locked in the operator relationships that will define the market for the next decade.

The 2026 FIFA World Cup is a nine-month forcing function. Operators who enter the tournament without sports-native tooling — without fast settlement infrastructure, without event-driven CRM automation, without compliance systems scaled for peak tournament volume — will visibly underperform relative to those who do not. That underperformance will create urgent demand for the B2B solutions that solve it, at exactly the moment when operators have both the budget and the motivation to buy rather than build.

First-mover B2B vendors who establish league data connectors, operator CRM hooks, and compliance abstractions before NFL, NBA, and MLB reach PM data alignment will define the integration standards that subsequent vendors must conform to. In a market with winner-takes-most dynamics at the exchange layer, the integration standard advantage at the operator tooling layer is durable.

The parallel to early US sports betting B2B is instructive, not merely analogous. Vendors who built operator tooling between 2018 and 2021 — in the first three years after PASPA legalization opened the market — captured revenue shares and operator relationships they still hold today. The PM market is at an equivalent inflection point. Global PM volume grew more than tenfold in 2025, to $13 billion per month. The volume is real. The operator tooling is not. That gap does not close itself.

The three-year window: If the PASPA analogy holds, the B2B tooling standards for sports prediction market operators will be set between 2025 and 2028. Vendors who establish operator relationships, league data integrations, and compliance frameworks in this window will have structural advantages that compound as the market scales. Vendors who enter after standards are set will be integrating into an existing ecosystem rather than defining it.

Data Sources & References

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