Young Bettors May Be Boosting Prediction Market Numbers

Prediction Market operators saw their volume continue to rise in 2025, and one Truist analyst has a theory on why.

Barry Jonas shared his thoughts on the sports betting industry in Truist’s 2026 US Gaming Sector Outlook and shared his theory on the prediction market book. The analyst believes the growth could be driven by younger bettors aged 18 to 20. 

With sportsbooks requiring customers to be at least 21, Jonas believes college-aged bettors are turning to prediction platforms that have a minimum age of 18. 

Truist did not have statistics to support Jonas’s theory, but data from HoldCrunch shows that industry-leading Kalshi is seeing more wagers on college sports than on pro. This could be a result of college students betting on their teams, though plenty of older bettors also wager on NCAA sports.

In addition to younger bettors, Truist also found that much of the volume for prediction markets comes from states without legal sports betting. That includes massive markets like Texas and California, where both retail and mobile betting remain illegal. 

Prediction platforms are also seeing larger wagers being placed. Sportsbooks have been accused of limiting hot bettors to protect their revenue. Those bettors are finding a home with operators like Kalshi, where they can earn higher payouts.

Problem Gambling Crisis Could be Brewing 

While sportsbooks and prediction markets battle across the US, responsible gaming advocates are still struggling to curb the rise in problem gambling. 

One group that has been labeled as “high-risk” for problem gambling is college-aged males. Their immaturity leads to overspending, especially when alcohol and peer pressure are involved. That is leading to serious debts that can have a devastating impact on a young life. 

If Jonas is correct, it could mean a problem-gambling crisis is already brewing beneath the surface. Prediction markets have only exploded in popularity over the last year, so it's too early to tell what damage they're causing. 

NCAA President Charlie Baker has already asked the Commodity Futures Trading Commission to suspend prediction markets. While a recent betting scandal brought the focus to protecting the integrity of their sports, Baker also called for stronger regulations and processes to help protect college-aged bettors.