Every year, the landscape of the gambling industry changes. Big players who dominated in January can often face a much different picture by December.
That was the case for many sportsbook operators as prediction markets roared into focus and threatened their future existence. Then some companies had stellar years that positioned them to thrive long into the future.
Winners
2025 was one of the most landmark years for the global gambling sector. The rise of prediction markets took many people by surprise. Then there was the awarding of lucrative licences in the UAE and New York that will be trailblazing projects.
1. Kalshi
The biggest winner in 2025 was Kalshi. The prediction market site forged ahead with steely focus. It didn’t let countless lawsuits and cease-and-desist letters stop it. At the start of the year, it was mainly known for accepting bets on the 2024 US Presidential election.
It rolled out sports prediction markets in January after it got a CFTC licence modification to allow it to offer intermediated futures trading. Many people were surprised at how it quickly started offering these markets in all 50 states. This gave it an edge over traditional sportsbooks that are only available online in 30 states.
gambling regulators are trying their best to stop Kalshi’s operations
State gambling regulators are trying their best to stop Kalshi’s operations. However, legal action in states like Nevada, New Jersey, and Maryland hasn’t yielded much success to date. Kalshi has strongly defended itself, going on the counter-offensive in New York and New Jersey by filing its own lawsuits.
saw $5.8bn in betting volume in November
The beginning of the NFL season in August took things into overdrive. It saw $5.8bn in betting volume in November and investors are lining up to get a slice of the action after seeing these types of figures. Kalshi raised $185m in June at a $2bn valuation, $300m in October at a $5bn valuation, and $1bn in early December at an $11bn valuation.
Kalshi is powering other upstart prediction market platforms like Robinhood Markets, which is another string in its bow. It is also gaining mainstream recognition with recent deal announcements with CNN and CNBC.
Polymarket is its major competitor, but it has yet to fully relaunch in the US since exiting the market in 2022.
2. Hard Rock International
It was an excellent year for Hard Rock International, as it managed to secure one of the lucrative downstate New York casino licences. While it comes with a hefty $500m price tag, annual gaming revenue from the property in Queens is expected to reach $3.9bn by year three.
$8bn project is expected to open in 2030
The Steve Cohen-based project looked to be a long shot at various times during the year. Local Senator Jessica Ramos effectively vetoed the proposal until another local lawmaker tactically managed to push through a rezoning measure. The $8bn project is expected to open in 2030, featuring 5,000 slot machines and 375 table games.
Hard Rock’s online gambling arm also surprisingly rolled out an iGaming-type product in Florida in late October. The games are similar to online slots, but they use historical NASCAR race results instead of standard random number generators. These games are high-margin and will complement its existing sports betting operations in the third most populated US state.
Finally, the opening of the Hard Rock California Casino in November is seen as a potential gold mine for the company. The $600m property is only 90 miles from Los Angeles and features a gaming floor comparable in size to many iconic Las Vegas resorts. It aims to attract two million visitors annually, which would significantly impact casino operations in Nevada.
3. GGPoker
GGPoker is now the dominant force in online poker after storming out ahead of PokerStars in 2025. It reported an all-time traffic record of 600,000 connected players in September during the WSOP Online 2025 event:
Its peak concurrent players often exceeded 100,000 versus about 35,000 for PokerStars. GGPoker’s parent company has also gotten past some early teething problems after completing its acquisition of WSOP from Caesars Entertainment in October for $500m.
It has significantly expanded the WSOP Online series, with prize pools increasing in size and more bracelets being awarded. The 2025 WSOP Online series gave out more than $100m in prize money through 33 bracelet events.
GGPoker identified these types of online festivals as being a powerful way to bring together recreational players and professional communities. PokerStars has a lot of work to do to try to catch up with GGPoker in 2026.
Losers
Not everyone can win, and there were a few big losers in 2025. Industry shakeups can either lead to some operators fading into irrelevance or serve as a catalyst for change, and they can come roaring back. Some of the big names on this list are already positioning themselves for a big comeback in 2026.
1. DraftKings
One of the operators hit the hardest by the explosion in interest in sports prediction markets is DraftKings. It has been playing ball and only operating in states where sports betting is legal, compared to prediction sites being live in all 50 markets.
has only had two profitable quarters
The explosion in volume for prediction sites, going from less than $100m monthly volume in 2024 to over $13bn monthly by late 2025, means that DraftKings is under threat. It’s been spending hundreds of millions every year on marketing to acquire customers and has only had two profitable quarters.
Investors expressed concerns over the eroding edge it has as the big player, alongside FanDuel, in US sports betting. It’s also largely got all its eggs in one basket, as unlike Flutter, all of its operations are in North America.
DraftKings is fighting back. It completed its acquisition of Railbird Technologies in October, which has a CFTC licence. That means it will launch DraftKings Predictions in the coming months.
2. Flutter Entertainment
Flutter Entertainment has been putting out fires on a few fronts in 2025. FanDuel’s parent company is dealing with the same challenges as DraftKings in combating the rise of prediction markets. It is working to launch FanDuel Predicts in the coming months in collaboration with CME Group.
Paddy Power had already closed 57 retail sportsbooks across the UK and Ireland
The significant tax hikes in the UK will impact its bottom line in that region. UK Chancellor Rachel Reeves increased the remote betting duty from 21% to 40% in November’s budget announcement. Flutter’s Paddy Power had already closed 57 retail sportsbooks across the UK and Ireland before this announcement. It may close further retail operations in the future.
Reasons given for the closures were “increasing cost pressures and challenging market positions.” Paddy Power has over 600 stores across the UK and Ireland.
Finally, Flutter had to shut down its operations in India due to the sudden banning of online gambling. India was a rapidly growing part of its portfolio. It was expected to contribute about $200m in revenue for 2025 before the ban came into effect in August.
3. ESPN Bet
Last on the list of losers is the now-defunct ESPN Bet. The industry reacted in surprise when the media got into the sports betting space in August 2023. Penn Entertainment licensed the name for its sportsbooks in exchange for $1.5bn in cash over ten years and $500m in Penn stock warrants.
captured less than 3% of the market and lagging behind six other operators in the rankings
Penn had lofty ambitions at launch to get a 20% market share by 2027. Little more than two years after going live, it is no longer in business, having captured less than 3% of the market and lagging behind six other operators in the rankings.
Penn exercised a contract option in Novmeber that allowed it to exit the agreement. It rebranded all the ESPN Bet platforms to theScore Bet as of December 1. ESPN didn’t wait much time after the announcement to strike a deal with DraftKings, which will see its odds integrated into ESPN’s content.
