How to add prediction markets to a sportsbook

The quickest way to get prediction markets wrong in a sportsbook is to treat them as another sport: a new feed for the traders to price, a new set of fixtures for the grading team, a new line on the risk report. They are none of those things, and an integration built as though they were ends up larger than the product it is delivering.

Start from what is different

A sportsbook prices its own line, holds the other side of it and grades it from a results feed. A prediction market differs on every one of those points, and the differences are what make it cheap to add.

Your customers already combine outcomes

The bet your customers like most is already a prediction about several things at once. In Illinois, parlays took 31.2% of all sports wagering handle in 2025 and 61.5% of the books' gross revenue.¹ Prediction exchanges are seeing the same habit: on one major US exchange, combos made up 58% of trading volume in September 2026, but under 13% of transactions.² In a book, parlays earn far more than their share of the stakes. On an exchange, combos carry far more volume than their share of the trades.

That is why combos are next on Parity, and in preview today on a practice board. Prediction market combos sets out how they work.

What you already have, and should not build twice

You hold the parts that are expensive to acquire: a licence, a KYC pipeline, a wallet, a responsible-gaming programme, a support team and a customer who is already signed in. A prediction-markets integration should reuse every one of them. If a provider asks you to open a second balance or a second account for the same customer, the integration has stopped being a feature of your sportsbook and become a separate product sitting next to it.

What the integration actually is

With an embedded surface, your team builds three things and none of them is a market.

If your front-end team would rather render the product themselves, the same account drives the API directly: list the catalogue, take a quote, submit the order against it, read the position, receive settlement. The boundary does not move between the two shapes.

Where the money moves

Your wallet stays the single authoritative balance. A customer with $100 who stakes $25 on a market still has one balance of $100: $75 available and $25 reserved. Parity returns the exact amounts to reserve, debit, release and credit as decimal strings, your ledger applies them, and Parity is told only whether the reserve succeeded. There is no transfer step and no Parity withdrawal screen.

Deciding what your customers see

A sportsbook will have firm views about which markets belong next to its own book. Those views are configuration, not a code change. Offering rules are set per operator, by category and by region, and can narrow further for an individual customer, and the same rule is enforced on the catalogue, the quote and the order. A market you are not offered is never sent to the frame rather than sent and hidden.

The rules apply what you write about your own licence. They do not encode any law, and where the final allocation of KYC, custody and regulatory responsibility falls is a commercial and legal question per jurisdiction. That conversation belongs at the start of the project, not at the end.

Settlement without a grading operation

When an event resolves, the outcome comes from its published resolution rather than from a result your team keys in. It becomes a settlement record delivered to your webhook, and two reconciliation endpoints sit beside it: a point-in-time statement and an append-only feed, so you can prove your books and ours agree at any moment and explain any payout months later.

What to ask any provider

Is the price my customer sees the price they can trade at? What happens to an order when the market moves between the quote and the fill? Who holds the customer's funds? Can I keep a category off my surface entirely, and is that enforced when an order is placed, not only when a list is drawn? And when a market settles, how does the record reach my ledger exactly once?

Those are the questions our prediction market platform for sportsbooks is written to answer. White label prediction markets covers what of the surface carries your brand, what a B2B prediction market provider should own sets out the division of work, and the prediction market API is the shape for teams that render it themselves.