Prediction markets have attracted plenty of attention over the last year. Most of the conversation has focused on exchanges, regulators, trading volume, and the growing number of users entering the space. Much less attention has been paid to what comes next.
As prediction markets continue evolving, the industry will likely need more than just exchanges and traders. It will need companies capable of building engaging experiences, simplifying complex products, and making prediction markets approachable for mainstream audiences.
That is part of what made my conversation with Alex Cohen so interesting. Cohen is the Co-Founder of Kalamba Games, a well-known supplier in the global iGaming industry. Kalamba has spent years developing games and technology for regulated operators across Europe and Latin America, while also expanding into emerging markets and alternative gaming categories.
During our conversation, Cohen explained why prediction markets have captured Kalamba's attention and why he believes companies like his could eventually play an important role in bringing prediction markets to a much broader audience.
Watch Our Full Interview With Alex Cohen
Why Kalamba is Paying Attention to Prediction Markets
Prediction markets may seem like an unusual fit for a company known for casino content and gaming technology. Still, Cohen sees several similarities between prediction markets and other emerging categories Kalamba has explored over the years. "We've been watching prediction markets as an area where we think that some of the skill set and technology that we've built up in other areas can add value," Cohen said.
Kalamba has experience working within heavily regulated environments and adapting products to fit unique regulatory frameworks. That includes areas such as horse racing, alternative gaming markets, and other specialized sectors that sit outside traditional online casino products.
For Cohen, prediction markets represent another industry still taking shape. Rules continue evolving. User expectations are still being defined. New products are appearing almost monthly. Those conditions create opportunities for companies willing to experiment.
Turning Traders Into Players
One of the most interesting themes from our conversation centered around user experience. Prediction markets have grown rapidly, but many platforms still feel built primarily for people who already understand trading. New users often arrive and immediately encounter charts, probabilities, market prices, and terminology that can feel intimidating.
Cohen believes there is room to simplify that experience. "One of the keys is making it so there's a clear, simplified call to action for users so that you turn a trader into a player in some way," he said.
That idea may ultimately become one of the industry's biggest challenges. Attracting early adopters is one thing. Reaching mainstream consumers is something entirely different. Kalamba sees an opportunity to help bridge that gap by creating experiences that feel more familiar, interactive, and accessible to everyday users.
Beyond Simple Yes and No Markets
Another area Cohen discussed was the potential for prediction markets to become more engaging through gamification. Current prediction markets often revolve around straightforward contracts. Users make a prediction, wait for the outcome, and eventually receive a result. That model works, but Cohen believes there may be opportunities to build experiences that provide faster feedback and greater engagement.
"It's something where you can get more synchronous feedback to a user," Cohen explained while discussing newer market formats that settle more quickly. As more short-duration markets emerge, opportunities may exist to build products that feel less like traditional trading platforms and more like interactive entertainment experiences. That evolution could become especially important if prediction markets want to attract users who have never traded before.
What Prediction Markets Can Learn From Other Gaming Sectors
Cohen also offered an interesting perspective on where prediction markets fit within the broader gaming landscape. Rather than viewing them as a completely separate category, he sees parallels to other sectors that initially operated on the edges of the industry before becoming established markets. He specifically pointed to the historical development of tribal gaming and other alternative gaming formats that faced regulatory uncertainty before becoming mainstream.
At some point, successful industries build momentum. "I think at some point any industry that develops over the course of several years has some momentum behind it, and then it becomes more difficult to stop that momentum," Cohen said. That doesn't mean every prediction market product will succeed. It does suggest that the broader category may be reaching a stage where long-term growth becomes increasingly difficult to ignore.
Alex Cohen's Advice for New Prediction Market Traders
As prediction markets attract more first-time users, Cohen believes education and responsible participation remain important. His advice is simple: start small and learn how the markets work before increasing your exposure. "Find where you can make small-scale trades at first and then see where that leads," he said.
He also emphasized that prediction markets often share characteristics with financial trading products, making it important for users to understand what they are participating in rather than viewing them as a shortcut to easy profits. That perspective reflects a broader theme throughout our discussion. Prediction markets can be entertaining, engaging, and innovative, but long-term success depends on creating sustainable user experiences.
The Trade Handle Prediction Markets Take
The biggest takeaway from this conversation is that prediction markets may be entering a new stage of development. For the past few years, the industry has focused largely on building exchanges, attracting liquidity, and proving there is demand for the product. The next challenge may be creating experiences that appeal to millions of users who have never placed a trade in a prediction market.
Companies like Kalamba Games could play a significant role in that evolution. Their expertise is not in building exchanges. It is building products that people enjoy using. If prediction markets continue expanding into the mainstream, the winners may not simply be the exchanges with the largest volume. They may also be the companies helping transform prediction markets from a niche trading product into a broader entertainment experience.