00:00Some states don't want prediction markets to be involved.
00:04And therefore, if you're getting in bed, so to speak, with some of those companies or some of those activities, you may lose your license.
00:10And that really is the big story as we end 2025.
00:13Yeah, I mean, it's wild.
00:15If we were talking this time last year, this wasn't a blip on anyone's radar, right?
00:19Their prediction markets were a small thing, basically just betting on elections.
00:23Sports betting starts happening earlier this year.
00:26And, yeah, blows up to the point that now all the major sports books are figuring out whether they want to do this and how they're doing it.
00:32We've already seen Fanatics launch its product, Fanatics Markets.
00:36It's live in a bunch of states right now.
00:39FanDuel supposedly launching before the end of the year.
00:42Giraffe Kings also launching either later this year or early next year.
00:47And, yeah, it's kind of fraught.
00:49Like, they are in this between a rock and a hard place on all of this.
00:53They are seeing these companies, Kalshi and Polymarket and Crypto.com, come and try to take their lunch, try to offer sports betting in all 50 states.
01:01You know, this is a sports betting exchange.
01:03This is a different model than state-regulated sports books.
01:06But they're looking at that and saying, if this is legal, we need to be involved with this.
01:10And they've taken steps to do that.
01:11At the same time, a bunch of states have told prediction markets like Kalshi and Crypto.com that you can't do this here.
01:18We're going to take your license away.
01:19We saw the first evidence of that happen with Arizona's regulator taking a license away from underdog for offering daily fantasy sports in Arizona.
01:27The knock-on effect is, does that impact FanDuel and DraftKings when they launch their prediction markets?
01:34We don't know the answer to that question.
01:35But it is chaos right now in the sports betting space as they try to figure out what's next for all of their prediction markets offerings and how they want to tackle this market.
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