Genius Sports CEO Expects Prediction Markets to Evolve, Not Disappear
Genius Sports’ Co-Founder and CEO Mark Locke has said that prediction markets will likely remain an important part of the US sports trading landscape, but he expects their current model to evolve as regulation develops.
In a statement, Locke highlighted prediction markets as a potential commercial opportunity for the company, which provides sports data, settlement, and integrity services to both traditional gambling operators and prediction market platforms.
He cited July estimates from research advisory Eilers & Krejcik Gaming indicating that 69% of Kalshi’s retail demand came from states without online sportsbooks. Locke argued that this could suggest prediction markets are reaching customers beyond existing sportsbook markets.
He also referenced a recent Kalshi settlement involving the Michigan-Western Michigan game as an example of the importance of accurate, authoritative data when determining the outcome of contracts.
Locke said while a potential Supreme Court ruling could determine which laws apply to sports event contracts offered at platforms regulated by the Commodity Futures Trading Commission (CFTC), it wouldn’t resolve the wider questions around taxation, product rules, and player safeguards.
He expects rules around access, taxation, and products to continue evolving at both the federal and state level.
