Prediction market platform Smarkets might consider returning to the US, potentially reintroducing its services into the American market.
In the ever-evolving world of sports betting, one name is making waves: Smarkets. The London-based company, known for operating one of the world's largest prediction markets platforms, is considering a return to the US sports betting market.
Smarkets' sportsbook division, branded as SBK, is growing more rapidly than its exchange platform. The company's recent foray into the US market can be seen in Indiana, where its online sportsbook has posted a year-to-date handle of $2 million in 2025 [1][2]. This marks a significant milestone, as it represents one of the first examples of a sportsbook operator returning to the US market after an initial withdrawal caused by high costs and strong competition from DraftKings and FanDuel.
A key factor encouraging Smarkets' return is the rationalization of market access fees, which have become more manageable compared to the expensive agreements early entrants once faced [1].
Beyond traditional sports betting, Smarkets may also bring its core offering: a prediction markets platform. This would differentiate it from competitors by allowing users to trade on a wide range of outcomes beyond standard sports bets, tapping into a niche with potential for growth in the US [1].
The US sports wagering industry, while still young, is regulated in a post-PAPSA form. Despite its infancy, the industry's graveyard is well-populated, as noted by Citizens equity research analyst Jordan Bender [3]. Smarkets' interest in reentering the market is a testament to the potential it sees in this maturing industry.
If permitted under Commodities Futures Trading Commission (CFTC) guidelines, Smarkets plans to push into the prediction markets product through the Smarkets brand [1]. The company, founded in 2008 by Jason Trost and Hunter Morris, is a major betting exchange/prediction markets operator that competes with Flutter Entertainment's Betfair platform in Europe [4].
The CEO of Smarkets is open to competing against top online companies in the space if given the opportunity. However, the cost-intensity and competition in the US sports betting market are significant challenges for operators [3]. Smarkets is currently going through the process of obtaining a betting exchange license in the US, a process that can take one to two years [5].
In summary, the current developments for Smarkets in the US include active sportsbook operations in Indiana with modest handle growth in 2025 [1][2], plans or considerations to expand its US footprint by offering its prediction markets platform, and the pursuit of a betting exchange license in the US [5]. This strategy suggests Smarkets aims to leverage its international expertise in prediction markets and a more favorable regulatory and economic environment to carve out a unique position in the still maturing US sports betting and prediction markets industry.
Sources:
[1] SBC Americas. (2021, January 27). Smarkets to launch prediction markets in the US. Retrieved from https://sbcamericas.com/smarkets-to-launch-prediction-markets-in-the-us/
[2] Indiana Gaming Commission. (n.d.). Sports Wagering. Retrieved from https://www.in.gov/igc/2862.htm
[3] Bender, J. (2020, May 26). US Sports Betting: A Cautionary Tale. Retrieved from https://www.citigroupglobalmarkets.com/research/us-equities/research-reports/us-sports-betting-a-cautionary-tale.html
[4] Flutter Entertainment. (n.d.). Betfair. Retrieved from https://www.flutter.com/brands/betfair/
[5] SBC Americas. (2021, June 22). Smarkets applies for US betting exchange licence. Retrieved from https://sbcamericas.com/smarkets-applies-for-us-betting-exchange-licence/
- Smarkets, a major player in the sports betting industry, is aggressively expanding in the US, particularly through its SBK sportsbook division.
- Aside from traditional sports betting, Smarkets may also introduce its prediction markets platform in the US, differentiating itself from competitors.
- The rationalization of market access fees and a more favorable regulatory environment have encouraged Smarkets to reenter the US sports betting market.
- Smarkets is pursuing a betting exchange license in the US, aiming to leverage its international expertise in prediction markets for growth in the maturing US sports betting and prediction markets industry.
