Jul. 27 at 12:46 AM
$ROLR retail is reading this wrong. Competitive pressure on ROLR in prediction markets is already baked into its current valuation.
$HOOD.X isn’t a new player in this space that seeks to disrupt the big two. RH has offered this feature to users for over a year now, but they are a fintech company at the end of the day, focused on their brokerage and bank users. This is good news for ROLR because of increased liquidity, as you said. Same applies with anyone else that partners with OG/CDC. Prediction markets need widespread reach and tight spreads to be attractive and successful, so every new partnership with OG/CDC should be viewed as bullish. ROLR’s approach is likely going to be the same as its legacy iGaming business, which is asset-light in principle. That’s the edge. Low-cost, wide reach, and outsourced labor to enable focus on multiple revenue streams in responsible entertainment. They’re unlikely to pursue vertical integration like
$DKNG. The only likely buyout candidate is
$SAR.
