The World Cup is in full swing, prediction market competition thickens, New York sportsbooks take a loss, and a massive jackpot is unveiled for a new NFL survivor contest.
While the World Cup dominates chatter around the sports betting community, anticipation builds for the American football season, when an abundance of prediction markets will be battling for market share.
This week brought news of multiple new prediction market entrants, as startups and industry stalwarts move forward with their competitive intentions, and early movers keep making headlines.
Here’s a roundup of highs and lows around the gambling industry this week.
Bingo: Fresh Competition Entering Prediction Market Space
You’ve got to play by the rules to win, and since sports event contracts are well within the parameters laid out by the CFTC, the opportunity is ripe for a pair of sports betting exchanges. Novig announced on Tuesday it’s been given the greenlight to operate as a DCM, as the company pivots from the sweepstakes model it adopted after finding the regulated market nearly impossible to penetrate. Meanwhile, after being approved as a DCM and DCO last week, ProphetX’s exchange is now live in all 50 states. Additionally, 365Predict, a startup founded by industry veteran Laila Mintas, wants to claim its own piece of the action.
Bingo: Kalshi Hits $2B in Annualized Revenue, Eyes IPO
Another day, another milestone for Kalshi. The top dog of prediction markets is doing business to the tune of $2 billion in annualized revenue, triple its numbers from November, according to a paywalled report by The Information, boosted by intense interest in the World Cup and NBA Finals. If the trajectory looks good to potential investors, they may get their chance to buy in. While it’s probably at least a year away, the company is reportedly in talks with investment banks about an IPO.
Bust: New York Sportsbooks Take it on the Chin
Seems like everyone in New York was cheering for the Knicks to win their first NBA title in 53 years. Everyone except the sportsbooks, that is. As Jalen Brunson & Co. took care of the Spurs in five games, Knicks bettors were cashing tickets left and right, leading to a $48 million loss for the state’s online books for the week ending last Sunday, Chris Altruda reported. It marks the first-ever weekly net loss for NY OSBs since legal sports betting launched in the state in Jan. 2022. The USA’s World Cup-opening win over Paraguay takes some of the credit, and here’s hoping that the Stars & Stripes continue to add to the carnage.
Bust: Gov. Pritzker’s Consolidation Plan Comes Up Short
While Illinois Gov. JB Pritzker had a mostly successful legislative session, his bill to merge the states’ gaming regulators failed to advance. Pritzker sees potential efficiencies in combining the Illinois Gaming Board with the Racing Board, which now oversees just two tracks, into a single entity called the Department of Gaming Regulation and Enforcement, but under such a structure, meetings would no longer be public. “While the state could benefit from the consolidation of administrative functions, there was concern among legislators about the lack of transparency …,” State Sen. Bill Cunningham told the Chicago Sun-Times.
Bust: Horses Die in Tragic Saratoga Fire
A barn fire broke out early Tuesday morning at Saratoga Casino Hotel Harness Track, a short drive from the town’s famed thoroughbred race course, killing 17 horses and injuring another. The barn that burned down was technically up to code and passed inspection, but hard questions are being asked about a lack of fire prevention protocols – basic things like fire alarms and sprinklers – which buildings at the track are exempt from installing, per The Daily Gazette. While horses’ safety is of utmost importance, the racing industry insists, barn fires have become too common an occurrence.
Bingo: Polymarket/Splash Sports’ NFL Survivor Contest Hits Blackjack
How do you top the $20 million guaranteed in the Circa Survivor Pro Football Contest? By dangling a $21 million prize! And that’s exactly what Polymarket and Splash Sports are doing, announcing the nationwide contest as they usher in a new partnership that brings prediction markets to the pick ‘em game/fantasy site. The description of the contest, of course, encourages those still alive heading into NFL Week 16 to use Polymarket for its intended purpose – hedging to protect your $1,000 entry fee! While entrants have to get two picks right in eight different weeks, “the last 2 weeks are only 1 pick,” the site says, “giving you the perfect opportunity to hedge if you’re one of the last entries standing!”
The post New Players Enter Prediction Markets, Kalshi Eyes IPO, Knicks Ding Sportsbooks in This Week’s Bingos & Busts appeared first on Gambling Insider.
