Polymarket and Kalshi Could Become M&A Targets as Prediction Markets Consolidate, Bernstein Says

Prediction markets allow users to trade contracts based on the outcomes of political, economic and sporting events. Wall Street broker Bernstein said the lines between exchanges, brokers and sports betting operators are increasingly blurring as platforms accelerate vertical integration, making industry consolidation more important.

Bernstein's latest analysis said prediction markets are entering a consolidation phase, with leading platforms Polymarket and Kalshi both potential acquisition targets. However, no prospective buyers, deal values, negotiation timelines or expected completion dates have been announced, leaving any potential transactions at the analyst-forecast stage.