Americans spent more on sports bets last year than on movies, music, and museums combined—and the industry taking a growing share of that money isn’t a sportsbook at all. In 2025, Americans placed roughly $166 billion in bets on sporting events.
Fortune reported last week 35% of bettors say they’re using traditional sportsbooks less because prediction markets like Kalshi and Polymarket have changed how they bet. Billions of dollars in sports wagering had started moving into a market invisible to state regulators, because prediction markets aren’t classified as gambling at all.
