Goldman Sachs Explores Opportunities in Prediction Markets

Goldman Sachs is reportedly turning its attention towards the burgeoning world of gambling via prediction markets. David Solomon, the chief executive of the bank, recently revealed that he has been meeting with leaders of key prediction markets to better understand the potential opportunities available.

These markets, which allow individuals to wager on the outcomes of various events—including political elections and entertainment awards—have experienced significant growth over the past year. Kalshi and Polymarket are currently the largest platforms in the United States, with the latter accepting bets in cryptocurrency.

Solomon commented on his recent discussions, stating that he personally met with the leadership of both platforms to gain insight into their operations. A dedicated team at Goldman Sachs is actively examining these markets, reflecting a broader interest from financial institutions in engaging with this new arena.

Polymarket faced regulatory challenges under the Biden administration, but recent shifts in political leadership have led to a relaxation of these restrictions. This development coincides with a period when users successfully predicted Donald Trump’s 2024 election victory, despite more conventional polling forecasts suggesting a closer race.

Kalshi, co-founded by Tarek Mansour during his tenure as an intern at Goldman Sachs in 2016, offers a platform designed to trade on events rather than traditional financial assets. This innovation arose from the need for institutions to protect themselves against market volatility and unforeseen political developments.

As Goldman Sachs re-establishes its dominance in stock trading—reporting impressive earnings of 4.3 billion dollars for the last quarter of 2025—Solomon has noted that corporates are optimistic about pursuing transformative deals in light of the current political environment. He emphasized that executives view the next few years as a vital opportunity for strategic expansion.

The combination of regulatory changes, market growth, and an evolving corporate landscape presents substantial opportunities for institutions like Goldman Sachs as they contemplate their place in the rapidly changing prediction market ecosystem.