Nov. 7 at 6:53 PM
Based on the words and plans of
$PENN and
$DKNG CEOs over the last 48 hours, it’s clear that they both believe sports-related event contracts are an **existential** threat to their online gambling business, respectively. I call BS. Sports-related event contracts/prediction markets/betting markets are neither inherently novel, disruptive, nor an existential threat. The existential threat is the proliferation of “Trade Everything,” whereby such contracts are treated as regulated financial derivatives and offered at scale by huge, full-service, reputable, fintech companies. Trading event contracts through an OSB/ICasino operator is fraught with friction, tax inefficiencies, and personal reputational concerns, which don’t exist within the “Trade Everything” ecosystem. That is the truth, which is far too devastating for the these online gambling CEOs to admit. The mere offering of event contracts does not adress the threat posed by “Trade Everything” in the USA. One reason I prefer
$SGHC