Summary
Sportsbooks and trading platforms are expanding into prediction markets, which allow betting on real-world events like sports and politics. Companies like DraftKings and Robinhood are launching new apps or features to offer these markets, facing legal and regulatory challenges. Casinos oppose these markets, arguing they are not legal, while traditional sportsbooks feel competitive pressure.
Key Facts
- DraftKings launched a new prediction market app in 38 U.S. states.
- Companies like Polymarket and Kalshi were early leaders in prediction markets.
- Robinhood is offering event contracts via a partnership with Kalshi.
- DraftKings' prediction app is not available in some states due to legal concerns.
- Some casinos argue that prediction markets are illegal and oppose their growth.
- DraftKings and other sportsbooks have left the American Gaming Association, which has campaigned against prediction markets.
- Prediction markets can potentially be integrated into various apps and websites, broadening access and reducing betting barriers.
