00:00Okay, Super Bowl coming up next week, Sam, earlier in the show, we discussed the fact that no prediction markets will be in commercials, they would love to, I'm sure I mean, they're spending a lot of money trying to get more awareness out there. Let's get to DraftKings and FanDuel. What kind of plans do they have for the big game?
00:14Yeah, DraftKings and FanDuel obviously will be taking parlays in every state they can. But this is also the first year that they'll be doing that on prediction markets. It looks like both these companies launched their own prediction markets in 17 states for DraftKings in December and 18 states for FanDuel.
00:32These sports prediction markets, you know, in key states like California and Texas, where they don't have the sports betting options. So they have this product, they filed their exchange partner this week, CME Group, filed to start offering these parlays or combos as they've been dubbed by Kalshi and Crypto.com, which already have same game parlays and parlay options on their platforms.
00:53Looks like the Super Bowl is the best timing for DraftKings and FanDuel to do that. And that's really important because it gets these really, really popular bets. These bets that you could argue are the reason that FanDuel is profitable now. Same game parlays really are the reason that the company is now making money and not wasting money like it was for years and every other company copied.
01:13It's getting them to these states where there's no legal sports betting options. And, you know, I think the timing of the Super Bowl is really, you know, just a huge factor here as well.
01:22I think it's, you know, when you have 30 people in a room in a state like California and someone says, oh, I wish we could bet on this. And someone says, oh, you can use DraftKings here and sign up and you can do parlays.
01:33That's, you know, it's a huge acquisition tool. If someone, you know, is not a big sports fan or sports better and, you know, they're more likely to do that on the Super Bowl than really anything else.
01:42You know, last year we saw parlays made up about our player props rather and parlays made up about 50 to 60 percent of all bets on the actual Super Bowl, which is just night and day from where we were, you know, maybe five years ago.
01:56And it was the first Super Bowl really where the public won on the money line. They wanted the spread. They wanted the total.
02:02But the books made a killing because of all these parlays and, you know, player props.
02:07So FanDuel and DraftKings offering this in states where they don't have legal sports betting.
02:12Huge move, you know, comes around the Super Bowl, you know, as well as they want the best product.
02:17You know, Kalshi is offering this stuff. They, you know, they can't advertise, but they're still offering this product.
02:21So I think they want to kind of beat them out there, which is, again, what they do the best.
02:25This is their bread and butter getting to the biggest game.
02:28So they haven't been listed yet, but it'll be really interesting to see what they look like.
02:31I think to start, it's going to be kind of free package parlays where you can't, you know, customize their own yet.
02:37But, you know, these companies, that's going to change in maybe a few weeks, a month.
02:40We'll see, you know, where things go from there and, you know, what happens with prediction markets.
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