Prediction markets have grown at a pace that has surprised almost everyone watching the industry. That includes Ron Segev, founder of Segev LLP and one of North America's best-known gaming attorneys.
During a recent conversation with Trade Handle, Segev shared his perspective on how prediction markets compare to the early days of regulated online gaming, why Canada could take a different regulatory approach than the United States, and what the industry needs to do to achieve long-term success.
One thing became clear throughout our conversation. Prediction markets aren't following the same path as online gaming.
Watch Our Exclusive Interview With Ron Segev
Prediction markets are evolving quickly, and few people have had a front-row seat to that evolution quite like Ron Segev. In our exclusive interview, the founder of Segev LLP shares his perspective on regulation, the differences between the U.S. and Canadian markets, where he sees the industry heading next, and what both operators and traders should be watching as prediction markets continue to grow.
Watch the full interview below before diving into some of the biggest takeaways from our conversation.
Prediction Markets Reached the Mainstream Much Faster
According to Segev, one of the biggest surprises has been just how quickly prediction markets have entered the mainstream. When regulated online gaming first began expanding across North America, many conversations centered around responsible gaming, money laundering, organized crime concerns, and whether institutional investors even wanted exposure to the industry. Those questions dominated the early years.
Prediction markets have looked very different. Instead of waiting for regulations to settle, sophisticated investors have entered the space almost immediately. Segev believes much of that stems from broader cultural changes in investing, online communities, and how younger generations view financial products compared to previous generations. That observation stood out because it mirrors what we've been seeing across the industry. New operators, institutional funding, and major financial companies continue to enter the space at a pace few expected.
Canada Shows There Isn't Just One Regulatory Model
One of the more interesting parts of our discussion focused on Canada. While many people assume North America will eventually adopt one consistent approach, Segev explained that's unlikely. Canada already regulates these products very differently. Unlike the United States, Canadian rules generally prohibit sports-based event contracts while requiring option contracts to last at least 30 days.
Current permitted offerings are focused on economic forecasts, environmental forecasts, and financial indicators rather than sporting events or politics. Canadian firms also operate differently, often acting as introducing brokers that connect customers with U.S. exchanges instead of running exchanges themselves. His broader point was simple. Even neighboring countries can arrive at very different conclusions about how prediction markets should operate.
The Industry's Biggest Opportunity Isn't Another Market
One answer caught me off guard. When asked where prediction markets have the biggest opportunity for growth, Segev didn't point to politics, entertainment, crypto, or another new category. He pointed to trust. His view is that prediction markets need to spend just as much time improving the overall ecosystem as they do launching new products.
That includes stronger responsible trading measures, better consumer protections, market integrity, and making sure everyday users believe they're participating in a fair marketplace. That's a perspective we don't hear nearly enough. Growth gets most of the headlines. Building confidence is what determines whether an industry keeps growing.
Sports Will Continue Leading the Way
Despite discussing everything from finance to weather markets, Segev still expects sports to remain the largest part of the prediction market industry. His reasoning wasn't based on regulation or market structure. It came down to something much simpler.
People enjoy following sports because they care about the stories behind them. They debate championships, individual awards, rivalries, and unforgettable moments long before a game begins. Prediction markets are simply another way to engage in those conversations.
That felt like one of the biggest takeaways from our interview. Technology may change, products may evolve, and regulations will almost certainly continue shifting, but people have always enjoyed making predictions about the things they care about most.
The Trade Handle Prediction Markets Take
After speaking with Ron Segev, one takeaway stood out more than anything else. Prediction markets have reached a point where growth alone isn't enough. The next chapter will depend on building trust, creating sensible guardrails, and making the industry accessible to everyday participants without sacrificing market integrity.
Those aren't the flashiest conversations, but they're probably the most important ones. As prediction markets continue attracting major financial institutions, new operators, and millions of new users, the platforms that combine innovation with strong consumer protections may ultimately be the ones that shape where the industry goes next.