Prediction market users lose more money than sports bettors, data shows

Users of prediction markets are experiencing higher rates of loss compared to those on sports betting platforms, CoinDesk reported, citing data from analytics firm Juice Reel. According to the data, the median return for prediction market users was -8%, a higher loss rate than the -5% recorded for sports bettors. Notably, large-scale traders in prediction markets who dealt in volumes over $500,000 achieved a 2.6% return, performing at the level of professional traders. In contrast, all users trading under $500,000 recorded losses, with small-scale traders dealing in less than $100 seeing the highest loss rate at -26.8%. The outlet explained that while sports betting platforms often limit or ban highly successful players, prediction markets do not. This places individual investors at a disadvantage, as they must compete directly against professional traders and market makers.