Prediction-market operational consolidation could spur M&A wave: Bernstein

Bernstein reports that prediction markets like Kalshi and Polymarket may become M&A targets as the industry undergoes operational consolidation. Platforms are currently integrating exchange, clearing, and brokerage infrastructure in-house, which creates opportunities for potential deals. However, this trend toward consolidation is also increasing regulatory risks and antitrust concerns within the sector. The shift suggests a strategic move to internalize core functions, potentially triggering a wave of mergers and acquisitions across these prediction-market platforms.