SOFTSWISS Panel Examines Role of Fixed-Odds Prediction Markets in Regulated iGaming

SOFTSWISS recently convened a LinkedIn Live panel to delve into the potential for integrating fixed-odds betting structures into prediction markets within the regulated iGaming sector. The session, titled "Prediction Markets for iGaming: Risks and Opportunities," was co-hosted by industry media company NEXT.io and brought together executives to discuss both the commercial upsides and regulatory hurdles of this evolving category.

Panelists highlighted that prediction markets offer operators a strategic avenue to bolster player engagement, reactivate dormant customer bases, and attract new audiences who may not typically participate in traditional sports betting. The consensus indicated a shift in operator focus from merely questioning the relevance of prediction markets to actively seeking concrete strategies for evaluation and responsible deployment. Alexander Kamenetskyi, Head of Operations at SOFTSWISS Sportsbook, noted this change, stating, "The discussion confirmed that operators are no longer asking whether prediction markets deserve attention. They are now looking for precise ways to evaluate the opportunity and implement it responsibly."

The discussion also drew a clear distinction between peer-to-peer (P2P) exchange models, such as Polymarket and Kalshi, and fixed-odds betting frameworks. While P2P platforms have driven significant growth in certain areas, their substantial liquidity demands, complex infrastructure requirements, and regulatory ambiguities present considerable challenges for adoption within regulated iGaming environments. Conversely, fixed-odds prediction markets are viewed as more compatible, as they can leverage existing sportsbook operations, established risk management protocols, and compliance procedures.

Regarding player acquisition, the simplified yes-or-no format inherent in prediction markets was identified as a key factor in lowering the entry barrier for new bettors. This ease of understanding could be instrumental in expanding the market reach. Pierre Lindh, Co-Founder and Managing Director of NEXT.io, posed a critical question for the industry: "The real question for operators is whether prediction markets will stand the test of time or remain a passing trend."

From a geographical standpoint, experts concluded that European markets are unlikely to adopt the P2P model that has gained traction in the United States. Instead, European operators are expected to develop prediction market products that align with their existing regulated betting frameworks, ensuring compliance with local licensing and regulatory mandates. The full recording of this insightful session is available on the SOFTSWISS LinkedIn page, with further details on the SOFTSWISS Prediction Markets Platform accessible on its dedicated product page.