Rapid Expansion of Prediction Markets and Sports Betting

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Transcript

00:00all right so uh what's going faster than legalizing sports betting is the unregulated

00:04prediction market world where everybody seems to want a piece of the pie sam who is the latest

00:11operator in the space that wants to open up some money and some customers to online prediction

00:18market not bets but prediction market wagers i mean what do you even say uh selections okay

00:24prediction market selections yeah it's it's telling itself it's just kind of a head scratcher

00:31or a tongue twister to kind of figure out what to call them um this basically is sports betting but

00:35not sports betting uh price picks is the latest company that is getting into this space that

00:40others already like underdog uh a fellow fantasy sports operator uh as well as calci obviously have

00:46gotten into these prediction markets which are available in all 50 states allowing people to

00:52buy contracts on the outcomes of things this is the first year really where the opportunity to

00:58buy contracts on outcomes has been extended to sporting events which has created a whole

01:03mess of regulatory pushback and disagreement over what sports betting and what's not but prize picks

01:09just this week made a major move filing with the national futures association on monday to be granted

01:14for a futures commission merchant license which will allow it to do these prediction markets although it

01:20hasn't said when it's going to start doing them one important thing to note here is that prize picks

01:24has not publicly said that they're going to be doing sports specifically uh if you remember calci and

01:29robin and all these other companies started getting into predictions uh pretty much around the election

01:35allowing you know events uh to bet on like the weather uh the oscars other kind of novelty things out

01:40here so price picks has not come out and specifically said it will go into sports now that's

01:45obviously what they're positioning themselves for fandal has made a similar move also saying that

01:50they're not going to do sports at least the start and draft kings is reportedly taking similar steps

01:54but all companies have been kind of careful so far not to say we're going to do sports uh because

01:59you've had a number of states so far push back where these companies are licensed you've had

02:03arizona recently you've had maryland you've had ohio say that you know if you start offering what

02:09we essentially deem is unlicensed illegal sports betting in other markets that could jeopardize

02:14your licenses in this state prize picks is probably the biggest daily fantasy sports operator around

02:20there they have their popular pick them games which are very close or similar to parlays and that's been

02:25a huge uh boon for their business so um it's a little bit of a chess game right now kind of waiting to

02:31see what happens with the cftc whether they're ever going to come down and regulate on it a new uh

02:36commissioner supposedly being considered now that the current nominee is kind of falling out of favor

02:42with the administration that commissioner or supposed commissioner also has ties to calci so

02:47they'd also be favorable here so this is just kind of another sign of a company taking a major step

02:52while it still waits to fully dip its toes in the pool of this whole prediction market business