The core competitive advantage of prediction markets compared to traditional gambling lies in the zero marginal cost model. How significant is this difference? In the lottery market, bookmakers typically take away 60% of the turnover, leaving participants with only 40% of the prize pool. Sports betting is slightly better, with a payout rate of around 97%, but the bookmaker still takes a 3% cut. Platforms like Polymarket have achieved near-zero take rates—transaction fees are almost negligible.

This advantage in the model directly impacts traditional online gambling. Every dollar in prediction markets is more valuable to players, and more of it flows into their earnings. Of course, prediction markets also face practical constraints: slippage issues and insufficient liquidity can reduce trading experience. But from an economic incentive perspective, the transparent zero marginal cost mechanism is already beginning to reshape the landscape of the gambling industry.