00:00Contracts on sports through prediction markets is not sports gambling legally, even though it feels like it when you are actually doing it.
00:08That makes a rollout, a national rollout that DraftKings intends, kind of complex, doesn't it?
00:15Yeah, they've had to be very careful about how they're doing this.
00:18So they operate sports books in a lot of states and they are not going to offer sports contracts through prediction markets in any of the states where they operate as a sports book.
00:27So they're going into 38 states with some kind of prediction markets, events, contracts, but only 17 of those states are going to have sports betting allowed because they're trying not to upset the regulators in the states where they have sports betting licenses.
00:44And both DraftKings and Flutter, which owns FanDuel, are kind of playing catch up to Kalshi and Pali market when it comes to prediction markets.
00:51The word is that these are very popular ways for people to engage in financial markets or other betting forms of wagering.
01:00Maybe betting is not the right word, but do the numbers back that up?
01:03Is there that much activity on prediction markets?
01:06We're seeing really rapid growth.
01:08So in the last couple of months, really since the start of this NFL season and since Robinhood got into this in a big way,
01:13you're starting to see trading volumes in the billions of dollars a month on Kalshi and on Pali market.
01:20And that is enough, I think, to be significant.
01:23You know, DraftKings told me that they are not seeing prediction markets cut into their business in states where they're operating as a sports book.
01:31But one key thing that this move today allows them to do is to get into states where they are not operating as a sports book.
01:37And there are some very big markets, Texas, California, Georgia, Florida.
01:41I think that's probably the biggest key here for DraftKings is that now they have access for sports products in those big states.
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