Cboe enters prediction markets, challenging Polymarket and Kalshi with regulated binary op

The way people bet on future events is changing. Big finance companies are now joining in. Cboe has started a new service for betting on the S&P 500 [^claim_449]. It uses special contracts called binary options. This service is already on Interactive Brokers [^claim_450]. It will soon be on Charles Schwab [^claim_451]. This is a direct challenge to crypto betting sites like Polymarket. Polymarket saw a 300% jump in use because of the World Cup [^claim_452]. Another site, Kalshi, set a record. Its total open interest hit $1.16 billion [^claim_453]. That is the first time it passed one billion dollars. The rules for these bets are still being fought over. The CFTC and states are arguing about who has control [^claim_455]. A sports betting app called Onyx Odds raised $20 million [^claim_454]. The money came from Kraken’s parent company Payward.

For crypto betting sites, Cboe’s move shows big interest. But it also brings a regulated rival for simple bets like stock market levels. Polymarket’s World Cup growth shows people want this. But its online volume must now compete with Kalshi’s $1.16B record. The fight between the CFTC and states creates doubt. If states win, sites must follow 50 different sets of rules. If the CFTC wins, there will be clearer rules but tighter limits. Onyx Odds getting money from Kraken suggests exchange wallets and ID checks could help bring money into betting. This could connect regulated and crypto systems.

The main point: betting on events is entering a new time. Regulated companies and crypto sites are fighting for money. The safe spot for crypto sites is risky or crypto-only events. Simple bets will face direct competition from Cboe and Kalshi. Watch how the CFTC-state fight ends. Also watch if exchange-backed apps like Onyx Odds can bring money from both worlds.