03:42 PM EDT, 06/10/2026 (MT Newswires) -- Prediction markets logged record volumes in May, with leader Kalshi growing its market share, though certain regulatory issues continue to be core to the industry's long-term sustainability, Macquarie said in a note e-mailed Wednesday.

Prediction market volumes amounted to about $31.17 billion last month amid continued momentum, with market leader Kalshi boosting its implied volume market share to 57% from 50% in April, according to Macquarie.

On Tuesday, DraftKings ( DKNG ) reported a 34% month-over-month surge in annualized predictions volumes in May to $3.1 billion. Kalshi's total volume was about $17.91 billion, with almost half coming from sports contracts, Macquarie said.

"We note that it is still very early days for (DraftKings' ( DKNG )) predictions launch, and we expect its market share to consistently rise through the year," Chad Beynon, senior gaming, lodging and theatres analyst at Macquarie, said in a note to clients.

Recently, Rush Street Interactive ( RSI ) applied to become a regulated designated contract market, joining the likes of Kalshi and DraftKings ( DKNG ).

"The move provides a potential federally regulated alternative if state sports betting faces tighter regulation," Beynon said. "More broadly, it highlights a growing openness among gaming operators toward regulated event-contract platforms."

With online sports betting operators now leaning into their own prediction market products, the main questions for investors continues to be around the long-term product overlap between the two, as well as potential regulatory changes, according to the note.

Earlier this week, Sportradar Group ( SRAD ) signed a multiyear global agreement with Kalshi, under which it becomes an official data and solutions provider for Kalshi.

The deal marks the "first meaningful step" by Sportradar ( SRAD ) into the regulated prediction market space, according to Macquarie. It also reinforces the Sportradar ( SRAD ) and Genius Sports ( GENI ) "positioning as a 'picks-and-shovels' infrastructure provider to both traditional sportsbooks and now (prediction markets)," Beynon said.

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