Bernstein: Kalshi, Polymarket could become M&A targets

Wall Street investment bank Bernstein has analyzed that Kalshi and Polymarket are potential M&A targets as consolidation in the prediction market industry accelerates. Bernstein explained that the lines between sports betting, exchanges, and consumer finance are rapidly blurring as prediction market platforms pursue vertical integration to secure both customer distribution networks and trading infrastructure. The bank noted that while Kalshi and Polymarket have established trading infrastructure, their relatively weak distribution capabilities make them more likely to be acquired than to act as acquirers.