FGS Global published its latest scouting report, providing insights into how Americans navigate a changing sports landscape that includes prediction markets and online sports betting.
The New York-based advisory and communications consultancy conducted a survey to analyze how Americans are responding to new opportunities in sports, particularly sports betting and the emergence of sports event contracts offered by prediction markets.
“The 2018 Supreme Court decision that overturned the federal ban on sports gambling and the more recent rise of prediction markets have driven a wave of opportunity, change, and uncertainty,” reads the FGS Global report.
FGS Global surveyed 2,030 sports fans using an online poll to collect data for the report.
The KKR & Co. subsidiary considers sports fans as “American adults who express interest in at least one collegiate or professional sport.” FGS Global worked with research firm RepData to conduct the survey that was executed between April 29 and May 8.
FGS Global finds prediction markets still new to general public
According to data provided by FGS Global and RepData, only 13% of the survey’s respondents currently use a prediction market platform, indicating that nationwide use of the products is still in its early stages of growth despite legal and regulatory disputes over their delivery as certain stakeholders argue that the offerings equate to illegal gambling.
“Despite ongoing media attention, prediction markets have moved into mainstream conversation ahead of public trust. While a share of consumers are aware of prediction markets, a comparable share say they’ve never heard of them,” continues the report.
FGS Global’s survey found that 21% of respondents have never heard of prediction markets. Meanwhile, 33% of the group is aware of prediction markets but have no interest in trading in any capacity.
The scouting report found that 43% of respondents believe prediction markets will have a negative impact on society. By comparison, 28% believe they will have a positive impact.
Survey respondents weigh in on CFTC regulation
FGS Global’s survey takes into consideration the current regulatory framework for prediction market trading, with the Commodity Futures Trading Commission (CFTC) as the federal regulator of these products. The CFTC’s responsibility for regulating event contracts continues to lead to legal and regulatory disputes amongst government officials.
FGS Global asked respondents to weigh in on how prediction markets should be regulated:
- 26% of respondents believe an agency like the CFTC should regulate them nationwide
- Legislation passed by state governments is considered the best approach for 25%
- 23% believe that Congress should pass federal legislation to regulate the products
- Only 7% believe President Donald Trump should take executive action
Collectively, 81% of the group want regulatory measures in place for both traditional sports betting operators and prediction markets as state regulators provide oversight for betting.
“For organizations operating in or adjacent to this space, that lack of consensus creates both challenges and opportunities,” adds the report. “While the regulatory framework continues to evolve, reputations are being shaped in real time. Companies that demonstrate integrity and transparency now will help define the rules that govern their next era.”
North Carolina voter poll finds similar results
Last week, the Meredith Poll published a report examining how voters in North Carolina feel about the state’s sports betting market that legalized online wagering in March 2024.
The survey presented questions regarding the operation of prediction markets in the state, with 47% of respondents being unfamiliar with the platforms. About 28% of the group is somewhat familiar with prediction markets. Meanwhile, 15% of respondents are very familiar.
The Meredith Poll data shows that prediction markets are either new or unknown to North Carolinians, providing similar results to the data cited in FGS Global’s scouting report.
The Meredith Poll used data from the U.S. Census Bureau and North Carolina voter registration system to construct its survey group that had a sample size of 1,022 registered voters. The Meredith College organization conducted the survey from July 1 to July 8.
