BofA Sees a $1.1 Trillion Market for Sports Event Betting in US

Bank of America Corp. estimates the potential market for US sports-related event contracts at roughly $1.1 trillion in annual volume, as prediction markets boom anew.

Assuming an average fee of about 1%, that would, in theory, translate into around $10 billion in annualized revenue for event-betting companies, the bank’s analysts said in a report Wednesday. The figures underscore the threat that fast-growing prediction markets — and particularly the industry leader, Kalshi Inc. — pose to the gambling industry. DraftKings Inc., one of the main online sportsbooks, recently estimated that its total potential revenue was also around $10 billion, the ...