Bernstein Predicts Prediction Market Consolidation; Kalshi and Polymarket Emerge as M&A Targets

KALSHI-7.70%
According to Bernstein's report covered by CoinDesk on Monday, prediction market technology stack consolidation is accelerating, making Kalshi and Polymarket potential acquisition targets. The analysis notes that over the past eight months, major consumer prediction market platforms have begun controlling both customer distribution channels and exchange infrastructure. Kalshi and Polymarket, which operate exchange technology but lag in distribution reach, could serve as either acquisition targets or acquirers. Major platforms are redirecting revenue previously flowing to third parties; Robinhood generates over 160 billion event contracts annually, while Coinbase's prediction market annualized revenue reaches approximately 100 million dollars.
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