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Kalshi and Polymarket could become M&A targets as prediction markets consolidate: Bernstein
Key takeaways
- Over the past eight months, every major consumer-facing prediction platform has moved to own both customer distribution and exchange infrastructure, the report said.
- "Kalshi and Polymarket own the stack but trail on distribution, which leaves each as plausibly a target as an acquirer," analysts led by Ian Moore said in the Monday report.
- Despite the sector's rapid growth, prediction markets continue to face significant regulatory and legal uncertainty.
Over the past eight months, every major consumer-facing prediction platform has moved to own both customer distribution and exchange infrastructure, the report said.
"Kalshi and Polymarket own the stack but trail on distribution, which leaves each as plausibly a target as an acquirer," analysts led by Ian Moore said in the Monday report.
The analysts noted that DraftKings acquired Railbird to launch its DKeX exchange, Robinhood partnered with Susquehanna to build Rothera, Coinbase acquired The Clearing Company shortly after launching event contracts, and Flutter established a dual-FCM structure to preserve access to multiple exchanges.
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