How Prediction Markets Are Reshaping Sportsbooks’ Odds Markets

KUALA LUMPUR, 30 SEPTEMBER 2026 —

The rise of prediction markets is reshaping the global sports betting industry, with executives from major firms warning that unchecked growth could demand stricter regulation to protect consumers and maintain market integrity.

Industry leaders from BetMGM, DraftKings, FanDuel, Robinhood, and Fanatics told Bloomberg’s Romaine Bostick that prediction markets—where users bet on outcomes beyond traditional sports, such as political elections, entertainment awards, or even corporate earnings—are siphoning liquidity and engagement from traditional sportsbooks. DraftKings CEO Jason Robins noted that while prediction markets offer broader appeal, they also introduce new risks, including market manipulation and regulatory scrutiny.

FanDuel’s president, Matt Cooper, acknowledged that the shift is forcing operators to adapt, but warned that without clear guidelines, the sector could face fragmented oversight.

The discussion highlighted how prediction markets, often hosted on platforms like Polymarket, Augur, or even social media-driven apps, are attracting younger, tech-savvy bettors who previously shied away from licensed sportsbooks. Robinhood’s head of sports betting, Chris McCabe, pointed out that the company’s entry into the space via its Robinhood Sportsbook has seen a surge in users trading on non-sports events, a trend that traditional operators say dilutes their core business.

Meanwhile, Fanatics CEO Michael Rubin emphasized that the lack of standardized regulations across jurisdictions—including in key markets like the U.S., UK, and Asia—poses challenges for operators navigating compliance.

For Malaysia, where sports betting is tightly regulated under the Malaysian Gaming Board (MGB) and limited to licensed operators, the trend raises questions about potential future policy adjustments. While prediction markets remain largely unregulated in the country, the global debate over their impact on consumer protection and market fairness could influence local discussions on expanding or reforming gambling laws.

The next steps for the industry, according to executives, will hinge on whether regulators move to harmonize rules or if operators self-regulate to preempt stricter measures.