Prospect Prediction Markets Inc. (TSXV: MKT) (OTCQB: MKTSF) made a winning debut at CEM’s Capital Event series, after impressing investors with its strategy to capitalize on the rapid growth of sports prediction markets in North America.

At the centre of that opportunity is a new way for sports fans to trade on the outcomes of games and competitions, in a market that is attracting major financial institutions, established trading platforms, and growing investor interest.

Bernstein Research estimates annual prediction market trading volume will surge from approximately US$50 billion in 2025 to US$410 billion in 2026, before reaching US$10 trillion by 2035, representing a compound annual growth rate of about 70%.

For Johnny Chen, Prospect's Founder and CEO, the company's position as one of only two publicly traded pure-play prediction market companies in North America gives investors a rare opportunity to gain exposure to the fast-growing sector.

He believes that limited investment choice, combined with Prospect's valuation, experienced management, and upcoming growth milestones, helped the company stand out at Muskoka.

“We're also trading at a pretty substantial discount to the other listed pure-play prediction market company and private venture-backed prediction market companies,” he said.

Prediction markets may sound complicated, but the basic idea is straightforward.

Instead of placing a conventional sports bet, users buy and sell contracts tied to whether a particular event will happen. The price of each contract reflects what other traders are willing to pay for that outcome.

In a traditional sportsbook, the operator generally sets the odds and takes the other side of a customer's bet. In a prediction market, buyers and sellers trade against one another, with prices determined by activity in the market.

Prospect earns brokerage fees when customers buy or sell these contracts.

”Prediction markets operate as peer-to-peer marketplaces where you're trading against other traders and you're not betting against the house,” Chen explained.

According to Chen, approximately 80% of prediction market trading volume currently comes from sports-related contracts, making the category a natural starting point for attracting users and generating trading activity.

But Prospect faces formidable competition.

Established platforms such as Kalshi and Polymarket have attracted substantial investment and public attention, while major financial and sports-related companies, including Robinhood and DraftKings, are moving into the market.

“We see ourselves as a specialty firm focused on doing one thing exceptionally well, and that is sports,” Chen said, likening larger competitors to retail giants such as Walmart and Costco that try to cater to everyone.

Prospect wants to build a more focused business that serves sports traders with detailed information and a wider choice of competitions. The company is developing a platform that brings together live scores, player statistics, injury updates, historical results, market prices, and trading tools in one place.

Chen described the experience as similar to the information-rich screens used by professional stock traders, with the data available to Prospect's users without a separate subscription fee.

That approach extends beyond the major North American professional leagues. Prospect sees an opportunity in sports such as cricket, rugby, curling, volleyball, table tennis, and extreme sports, where dedicated fans often have limited trading options.

Sportsbooks have traditionally concentrated on major competitions because setting odds for smaller leagues can be difficult and expensive. Prediction markets offer a different approach because traders themselves help determine prices.

”When we look at each of these individual sports on an individual level, they may seem small, but in aggregate, they represent quite a large part of the market,” Chen said.

One of Prospect's most important developments has been its progress in the regulated U.S. market. In August 2026, the company secured registration as an introducing broker with the U.S. Commodity Futures Trading Commission and became a member of Crypto.com Derivatives North America.

In September, it followed with a definitive agreement involving OG Prediction Markets and Crypto.com Derivatives North America to support the launch of event contracts in the United States.

Under the arrangement, Prospect handles the brokerage side of the business, while Crypto.com provides the exchange and clearinghouse services needed to process trades.

That allows Prospect to concentrate on developing its platform, attracting customers, and expanding its sports offerings.

“Today, we operate as the brokerage, and Crypto.com acts as our exchange and clearinghouse,” Chen said.

The company says its platform is technically live across the United States, although it restricts access in certain states for regulatory risk management reasons. Canada is not currently a priority as the company awaits further regulatory clarity.

Prospect is also pursuing a Designated Contract Market (DCM) licence, which would allow it to operate its own exchange if approved.

The company’s  roadmap calls for additional college and professional sports markets before the end of 2026, followed by expanded institutional trading, new payment options, and a targeted exchange licence in early 2027. Further expansion into women's basketball, Major League Soccer, and international soccer is planned for the second quarter.

Following Prospect's selection as a CEM Muskoka Top Pick, Founder and CEO Johnny Chen discussed the company's growth plans, the experience behind its strategy, and the milestones investors should watch through 2027.

“Our focus is on building a deeper, richer trading experience by adding more sports, more markets, and better features for our users. We're expanding into major leagues, college sports, and emerging competitions, while making it easier for customers to deposit and withdraw money.

We also want to build partnerships with emerging sports leagues and teams to help grow their audiences and bring more fans onto our platform.”

“My background is in engineering, followed by equity sales and trading at firms including BMO Capital Markets, Stifel, and Raymond James, where I worked with institutional investors in Canada and the U.S.

Our roots are in capital markets, and that's important because prediction markets operate within a regulated financial system. We've also been building businesses in blockchain and fantasy sports since 2021, so we bring experience in both trading and technology.”

“We are pursuing our DCM licence, which will allow us to operate as an exchange in addition to our brokerage business. I think that's going to be a key unlock and will open a whole host of other opportunities for us.

Alongside that, we'll continue expanding our sports coverage, improving the platform, and building strategic partnerships. We still think we're in the early innings of the build-up for prediction markets.”

CEM launches 2027 with the 13th Annual AlphaNorth Capital Event, January 22–24, at the Grand Hyatt Baha Mar in Nassau, Bahamas, where Prospect Prediction Markets Inc. will be in attendance.

AlphaNorth connects emerging public companies in mining, technology, biotech, and special situations with influential investors through exclusive, pre-scheduled one-on-one meetings designed to uncover investment opportunities, forge valuable connections, and fuel growth.

Three days. Powerful connections. Fresh investment opportunities.

Warm Regards and Happy Investing,

Fabian Dawson

Each week, CEM Partner and Portfolio Manager, Ryan Iverson, spotlights the ideas and companies sparking investor interest from emerging growth stories to the Top Pick featured across CEM’s Capital Events. This series brings real insights from the annotators shaping tomorrow’s markets and reveals where investors are finding the next breakout opportunities.

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