Prediction Markets Are Coming to Sweepstakes Casinos

When you think of prediction markets, heavy hitters like Kalshi and Polymarket come to mind. Sites like Novig are carving out a niche in sports contracts.

Recently, I came across a new player in the prediction space, one I didn’t see coming. Sportzino now offers predictions alongside its sweepstakes sportsbook and casino products. While it offers far fewer contracts than top sites like Kalshi, it gives sweepstakes players a new gaming product.

Moreover, it may signal a shift in a market reeling from a growing number of sweepstakes bans across the country.

Sportzino Now Offers Predictions

Last week, I logged into Sportzino to claim my daily reward and saw a bold banner advertising Sportzino Predictions. Clicking the banner took me to the sweepstakes sportsbook's Predictions section.

The first thing I noticed was that there are no sports-related contracts. This makes sense as the site already has a sportsbook.

Here’s a breakdown of the available markets:

• Entertainment – Music, People, Television
• Politics – Congress, International Elections, US Elections, 2028, Trump
• Companies – IPOs, KPIs, M&A
• Economics – Fed, Jobs & Economy, Oil and Energy
• Financials – Companies, Indices
• Mentions – Politicians
• Science and Technology – AI, Big Tech & Business, Energy, Physics & Math, Space
• Health – Currently only a single pandemic-related contract

Each contract lists your standard Yes/No probability and American-style sportsbook odds. There were as many as 600 different contracts when I checked it out.

One thing I like about the setup is that you can trade predictions in both GC and SC. For GC, the minimum contract is 10,000 GC. The minimum SC contract is 1 SC. If you want to trade predictions with no monetary risk, this is a great way to test them out.

One Major Caveat – NOT CFTC Regulated

Sportzino Predictions does not appear to operate as a CFTC-regulated exchange. That means players shouldn't assume it provides the same protections as platforms like Kalshi. Its legal status is also a separate question, particularly given the ongoing disputes over how prediction contracts should be regulated.

For those new to trading contracts, this means you don't have the same regulatory protections against market manipulation and insider trading that apply to CFTC-regulated exchanges. You also lack the exchange-specific federal safeguards governing customer funds and market operations. 

For now, I’d treat these like political bets at traditional sportsbooks. 

Is This the Start of a New Trend for Sweepstakes Casinos?

The bigger question is, “Why start offering prediction contracts at sweepstakes casinos?” Are they trying to cash in on a growing trend, or is this part of a longer play?

Prediction markets face several heated legal battles, and the Supreme Court may eventually have to rule on this matter. If federal courts ultimately strengthen the CFTC's authority over prediction markets, it could reshape the industry. But that wouldn't necessarily benefit sweepstakes casinos. Operators like Sportzino might still need federal registration or substantial changes to their products to participate in a regulated market.

Is Sportzino laying the groundwork for such an expansion? They don’t offer sports-related contracts, so if states gain exclusive authority to regulate sports contracts, Sportzino could stick to non-sports real-world events.

Now that Sportzino is offering predictions, will other sites do the same? Crown Coins already lets you wager on sports with its Wow Picks, so it could easily expand into predictions. Other sites could add non-sports contracts and ignore sports altogether.

Did Sportzino Already Shoot Themselves in the Foot?

Sportzino may have killed any long-term prospects by launching prediction markets without regulatory approval. The company operates under a sweepstakes model, and if it argues its prediction markets can operate under the same structure, it will face legal challenges.

If Sportzino eventually pursues federal registration, regulators could scrutinize its earlier operations. PokerStars offers a cautionary example of how a company's history can complicate licensing, although the two situations involve different regulatory systems.

For now, I’ll keep an eye on Sportzino and other sites to see whether this is an anomaly or the start of a new trend. In the meantime, Sportzino Predictions can offer a lower-risk way to try prediction markets. You can play with GC or use some of your daily rewards to place a few contract bets. Treat it like entertainment, just like anything else at sweepstakes casinos.