00:00So tonight's Knicks-Pacers game is kind of the convergence of Wall Street, a lot of fans from Wall Street, and sports fans, you know, kind of a perfect merging of the two.
00:08What kind of volume do you see, do you anticipate seeing for contracts tied to this series?
00:13I think we're going to see a lot.
00:14We yesterday launched our first games specifically associated with Oklahoma City and Minnesota and saw tremendous results from it, clients incredibly engaged in a game.
00:26So I can only imagine with what I've seen here with the Knicks in Indiana that you're going to see continued engagement and probably a lot of volume higher than probably what we saw yesterday.
00:36Yeah. And you have individual contracts for each games as well.
00:39So it's not just the series.
00:40And certainly I hope that the Knicks will sweep the Pacers, but it is unlikely.
00:44I know you're laughing.
00:45How much liquidity do you anticipate there to be for a game seven even before the series plays itself out?
00:52So we already have the championship contracts up there.
00:54So there's different sets of contracts that are available.
00:56You have an individual game and then who will win the championship.
00:59We've already seen very deep liquidity in the game seven championship, so who will win.
01:03But what will be interesting is each one of these games are their own individual contract.
01:07So a game seven probably would see heightened liquidity in there overall just because the interest overall will be greater because of what will happen.
01:14You kind of saw that a couple of days ago between Oklahoma City and Denver with a tremendous game coming together after a huge series.
01:21I think you'd see the same thing, especially if you talk about Indiana and New York Knicks, which is a huge rivalry.
01:26Now, Robin, of course, this isn't just confined.
01:28This prediction market isn't just confined to basketball.
01:31You're also involved, of course, with PGA, Indy 500, I'm told, as well.
01:36Is there a sense here that the adoption of this will be predicated on the quality of the sport or the competition or the matchups, if you will?
01:45Or is it just going to be sort of everybody's just going to go in no matter what the event is, meaning it doesn't matter.
01:50It's just sort of agnostic to the event or the sport.
01:53So actually prediction markets as a whole, I think, are greater than just sports.
01:55And what we saw this when we did the election contracts, enormous popularity, you know, over 800 million contracts traded on just that on the presidential election.
02:05We've seen that continue with economics, but also with sports.
02:07I do think what you see is a correlation between, let's say, the sports that people are very interested in, like the NBA playoffs right now and the NHL playoffs versus maybe something like the PGA,
02:18which maybe, you know, people have a little less interest because they don't know that much about.
02:21But if you compare the Masters to the PGA, unbelievable participation for people because they want to access these markets.
02:27They have vested interests, what they're looking at.
02:29It's an opportunity for them to enter and exit in real time.
02:32So it's really an engaging product for them.
02:34Of course, these prediction markets are not without controversy.
02:37Regulators have looked at this and they've questioned whether this is just effectively gambling and whether it should be regulated as gambling.
02:43How many states are you currently up and running in and which states are holding out so far?
02:48So we're currently not offering this in New Jersey, Nevada, and in the state of Maryland.
02:54We're working very closely with both the state regulators there, but it is available to the rest of the United States.
03:00I think more importantly, when you look at what's happening from a regulation standpoint, is these are basically federally preempted contracts.
03:06They work and trade just like a futures contract that's available to any of our customers.
03:11And we think that that holds true for how these products should be treated and how they are governed.
03:16And, you know, we're working with the CFTC and others to make sure that they feel comfortable with it.
03:20And just to be clear, I mean, I can only bet on the outcome.
03:22I can't do like, you know, how many points a certain player is going to make or something like that or any kind of parlays or anything like that, right?
03:29Correct. You can only trade actually the outcome.
03:31Is it who is going to win a particular event?
03:34What about people overseas if they wanted to place a bet?
03:37Are they able to do that?
03:39We do not. We do not let anybody overseas.
03:40It's only reserved for domestic U.S. clients today.
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