Prediction Market Customer Profiles Debated as Connecticut Forces Operator Exit Over Sports Contracts
Panelists at Predict 2026 described prediction market customers as sports-first retail traders aged 29-31 or innovation-seeking, with 45% sports betting cannibalization and 27% larger wagers. Connecticut’s DCP secured exits by ProphetX, Gemini, and Webull after cease-and-desist orders to nine platforms for allowing under-21 users and college wagers.
SCCG Take — Connecticut’s enforcement exposes fragmented state rules that treat prediction products as illegal gambling, requiring operators to map compliance costs against observed industry expansion.
Prediction markets are drawing varied descriptions of their core users alongside fresh regulatory pushback, with Connecticut ordering several platforms to halt sports-event trading.
Differing Views on Who Trades Prediction Markets
Laila Mintas, founder and CEO of 365 Prediction, described the typical customer as someone seeking entertainment and innovation with interest in world events and the resources to participate. Charles Gasparino, a reporter with Fox Business News, pictured a 24-year-old male who drinks heavily and watches sports.
Jeanie Hightower-Sellitto, senior vice president and general manager with DraftKings Predictions, called the base retail-centric and sports-first by trading volume, with crypto secondary. Jordan Bender, managing director equity research at Citizens, put the average age at 29 to 31 and male.
Bender reported that prediction markets have cannibalized around 45% of the sports betting industry in states where it is legal. “Through some of the work that we’ve done, we’ve found that around 45% of the sports betting industry has been cannibalized by prediction markets,” Bender said. “That’s obviously in states with legal sport betting.”
He added that adopting players have increased wager size by about 27%, expanding the total industry. Tom Johnson, founder and CEO of HoldCrunch, who spent 18 years at Flutter Entertainment, said UK customers showed similar emotional engagement across Betfair sports betting and prediction markets.
Panelists noted limited efforts to engage women. Hightower-Sellitto pointed to DraftKings cultural products such as “Dancing with the Stars” that draw a more female demographic.
Connecticut Enforcement and the Compliance Challenge
Connecticut’s Department of Consumer Protection told ProphetX, Gemini, and Webull to stop offering sports-event contracts traded on prediction markets. All three received cease-and-desist letters and have agreed to comply, according to CDC Gaming. ProphetX, which offers only those products, will exit the state entirely while the others continue financial offerings.
Bryan T. Cafferelli, DCP Commissioner, said the actions sent a clear message. “Our actions sent a clear message: We will not tolerate illegal prediction market activity that preys upon the most vulnerable consumers.” Cafferelli added that the three operators heard the message and are leaving. He expressed hope that others will conclude targeting Connecticut consumers is not worth breaking the law.
The agency sent letters to nine platforms last month, including ProphetX, Gemini, Webull, Polymarket, Coinbase, Crypto.com, Robinhood, Novig, and Underdog Predict. Officials determined the sites violate state gaming and unfair-practices laws by allowing participants under 21 and wagers on state collegiate sports.
These steps illustrate the immediate compliance risks prediction platforms face in jurisdictions that view sports-event contracts as unlicensed gambling. Operators must weigh reported cannibalization and wager size increases against the prospect of similar state-level exclusions.
Reporting: CDC Gaming
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
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