New York, January 16, 2026, 08:34 EST
- Kalshi reports strong interest in its “Combos” product, which involves multi-leg sports bets
- Polymarket is moving into parlays as prediction markets encroach on sportsbook territory
- Liquidity and regulation stand out as the top challenges, say analysts and sportsbook executives
Kalshi revealed its new “Combos” product for multi-leg sports bets hit over $100 million in trading volume in just one week—a rare peek into the rapid growth of prediction markets in sports. Parlays, which pay out only if every leg wins, made up 63% of New Jersey’s online sports betting revenue through October. Both Kalshi and competitor Polymarket are racing to roll out similar offerings. Polymarket has dangled a $50 bonus for its first multi-leg bet launch. Meanwhile, DraftKings and Flutter’s FanDuel have launched prediction products in states where online sports betting remains banned, though execs remain skeptical that exchanges can rival sportsbooks’ “breadth of choice,” often dismissing them as “structurally limited.” 1
Bank of America analysts estimated back in November that prediction markets now account for 3% to 8% of the legal U.S. online sports betting market — still small, but no longer on the sidelines. Adam Rivers, a managing director at Alvarez & Marsal, pointed to the absence of “the same range of exotic bets” seen at sportsbooks, highlighting “same-game parlays” as a key gap. Shaun Kelley from BofA has dubbed parlays the industry’s “killer app,” yet exchanges face the challenge of building enough liquidity for each leg and handling transaction fees, which tighten the margins. 2
The NFL playoffs are kicking off, driving a surge in betting and a flood of parlays. Platforms aim to go beyond basic win-loss bets, focusing on linked outcomes that boost sportsbook profits.
PredictStreet called Kalshi’s Combos a peer-to-peer parlay product, highlighting how the exchange model allows users to bet against each other instead of a house. The sports segment was painted as key to Kalshi’s recent surge, with top U.S. leagues driving the most activity. 3
Prediction-market exchanges can’t just set their own odds like sportsbooks and back the other side. When liquidity dries up, you get stale prices, wider spreads, and smaller payouts — all red flags for high-volume bettors who tend to shun such markets.
For now, companies are relying on incentives and popular leagues to keep trades moving. The real question is if those markets hold up once the calendar slows down and casual money fades.
Yet the larger threat could come from regulation: state gaming authorities contend that event contracts amount to unlicensed sports betting. Kalshi has pushed back, battling cease-and-desist orders in court while broadening its presence in the sports market. 4
The Australian Financial Review pointed out the growing scramble to “crack multis” amid rising sports-betting stakes, highlighting mounting pressure on sportsbooks and exchanges to keep up with parlay demand. 5
