Sportradar Positions Itself as Data Backbone of the Prediction Markets Boom

Sports have become the driving force behind the rapid rise of prediction markets in the United States, and that shift is creating a new lane of opportunity for data and technology providers that sit behind the trading exchanges rather than in front of them. According to an August report from industry research firm Eilers & Krejcik, sports accounted for ~82% of Kalshi's U.S. prediction volume over the last twelve months, a concentration that underscores how closely the category's fortunes are tied to sports outcomes.

The scale of the growth is striking. The report estimates total monthly U.S. prediction market contract volume reached 49.0 billion contracts in July 2026, representing growth of approximately 49 times versus 0.9 billion in August 2025. Prediction markets are also closing the gap with traditional sportsbooks. Per Eilers & Krejcik, U.S. sports prediction market handle-analog accounted for 30% of combined prediction market and online sports betting handle in June 2026, up from just 1-2% a year earlier. Handle-analog refers to the prediction-market equivalent of the total amount wagered.

Prediction markets allow people to buy and sell contracts tied to real-world outcomes. Platforms such as Kalshi and Polymarket are regulated by the CFTC, the federal agency that oversees futures trading, rather than by state gaming regulators. That distinction gives them reach into states where regulated sports betting remains unavailable. Even major sportsbook operators, including FanDuel and DraftKings, are building their own prediction market products and treating the category as an expansion lane. U.S. prediction market app downloads peaked at more than 6 million in June 2026, led by Kalshi and Polymarket, and the firm points to exchange fundraising targets implying valuations of up to $40 billion.

Every one of those contracts must settle against something: the official result of the game. That is where Sportradar (NASDAQ: SRAD) comes in. The company has spent decades building the data, live odds, fan engagement, customer acquisition capabilities and integrity tools behind sports betting and media, and prediction markets need the same toolkit. "We see prediction markets as a natural extension of our core business and a significant opportunity where Sportradar is uniquely positioned to lead, given our premium content, global scale and unmatched product portfolio," said Carsten Koerl, Founder and CEO of Sportradar. He added that prediction markets expand the U.S. total addressable market by opening up new states, attracting new players and increasing engagement with sports.

Three factors stand out in the company's positioning. Official data is a must-have, since every contract settles on the official result and participants need that data in real time. The heavy lifting is largely complete, because Sportradar reports its infrastructure, technology, sports rights and industry relationships are already in place for sports betting. And its market grows as the ecosystem does, since it can sell beyond the exchanges to the market makers and brokers now entering the space, who need fast, reliable data to keep trading liquid and settle trades.

For Texas businesses and the broader sports economy, the implications extend beyond trading platforms. Growth in prediction markets pulls in data providers, media companies and technology vendors that support settlement, integrity and fan engagement. Sportradar notes it only works with authorized, registered, licensed operators and complies with all applicable regulations in every market where it operates. To learn more about how Sportradar powers prediction markets, click here. The content was originally published on Benzinga.