Bank of America Sees $1.1 Trillion US Sports Betting Market; Kalshi Tops 80% Volume
Bank of America Corp estimates US sports-related contract trading could hit $1.1 trillion annually, with Kalshi capturing about 80% of April’s volume. Rapid growth in federally regulated prediction markets has raised debate over gambling versus investing, prompting calls for consumer guardrails as Schwab and Cboe steer clear of sports bets.
1. Market Size Estimate
Bank of America projects that US sports-related prediction contracts could reach roughly $1.1 trillion in annual trading volume, driven by seamless mobile app integration and direct bank linkups. Kalshi Inc. dominated last month’s activity, with sports wagers accounting for about 80% of its exchange volume.
2. Addiction Concerns and Guardrails
John Arnold warns that fast-growing sports prediction platforms foster addictive behavior among young men by enabling instant, frictionless bets. His foundation is allocating at least $4 million this year to support research and advocate for consumer protections rather than outright bans.
3. Industry Response
Brokerages and exchanges are cautious: Charles Schwab has ruled out sports prediction markets to align with its corporate mission, while Cboe Global Markets plans a broader offering but will exclude sports products pending clearer legal guidelines.