I looked more into this after your question and found some helpful insights at https://teachingbd24.com/prediction-markets/ that explain why prediction markets and iGaming likely won’t merge soon despite their similarities. Prediction markets blend gaming, finance, and crypto aspects which puts them in a complex regulatory category, especially in places like the US where event contracts can be treated as derivatives. Meanwhile, online casino betting focuses mostly on games of chance and is still highly restricted or illegal in many states. The audience and user behavior also differ quite a bit; prediction markets tend to appeal to those interested in financial-style speculation and crypto, while iGaming attracts traditional gamers looking for casino games. Plus, there are major differences in product mechanics and acquisition methods, even though you can see some overlap in sports-related offerings and user channels. All of these factors, including regulatory challenges and different markets, suggest that while they may influence each other and evolve with tech advances, a full merger seems unlikely for now. So it looks like they’ll continue to grow separately but might borrow ideas and features from each other over time.
