DraftKings — which runs one of the two largest sportsbooks in the U.S. — has launched its long-anticipated prediction market, embracing a surging alternative format to traditional online gambling. Why it matters: The rise of prediction markets such as Polymarket and Kalshi has upended the betting landscape,

As prediction markets surge, Wall Street is grappling with an uncomfortable question: Is there any distinction left between investing and gambling?

The crypto firm has its sights on becoming an “everything exchange,” and prediction-markets platforms like Kalshi are starting to show up everywhere.

Coinbase has added stock trading, Kalshi-powered prediction markets, and Solana-based DEX access as it moves toward an “everything app.”

In 2025, seven years into legalized sports betting, the industry faced some of its biggest challenges yet, rocked by multiple high-profile scandals, embroiled in taxation issues and confronted by a fast-growing disruptor to the traditional bookmaking model.