In an earnings call on Friday morning, Jason Robins, CEO of DraftKings, stated that prediction markets can be a “powerful lever” to persuade governments to legalize online sports betting.
Despite the fact that traditional internet sports betting is still prohibited in 19 states, including Texas and California, the remarks contribute to the expanding discussion surrounding the national implementation of prediction markets, which can be used to wager on sports.
The Commodity Futures Trading Commission is in charge of federal regulation of event contracts offered by prediction markets, including those that let users bet on sports results. These contracts are considered financial instruments. States regulate sports betting.
ALSO READ: Five years after the largest casino merger, Caesars has failed to pay off.
Prediction markets will put pressure on more states to legalize sports betting, according to DraftKings.
Although prediction markets can successfully mimic the types of sports betting that are governed by state legislation, they are not subject to state taxes or laws.
Sports event contracts will be added to DraftKings’ prediction market platform, the company announced this week.
It stated that DraftKings Predictions would go live in the upcoming months.
Robins thinks that when state legislators witness their voters engaging in a type of sports betting that generates no revenue for the state, they will be inspired to increase sports betting within their boundaries.
According to Robins, “as states witness this continue to grow, it will put increased pressure on policymakers to strongly consider whether they should follow the path of the other half or so of the country and just pass sports betting legislation.”
Courtesy: https://www.covers.com, https://www.casino.org, https://pechanga.net
What did DraftKings CEO Jason Robins say about prediction markets?
He said prediction markets can be a “powerful lever” to push governments toward legalizing online sports betting.
How many U.S. states still prohibit online sports betting?
Online sports betting remains illegal in 19 states, including Texas and California.
Who regulates prediction markets in the U.S.?
The Commodity Futures Trading Commission (CFTC) oversees federal regulation of prediction markets.
What new feature is DraftKings launching soon?
DraftKings announced it will launch DraftKings Predictions, a platform for sports event contracts.
Why does Robins believe prediction markets could influence state lawmakers?
He believes seeing residents use untaxed prediction markets will pressure states to legalize and tax sports betting.
A Nevada ruling exacerbates the nation's courts' increasing disagreement over whether prediction markets are bets…
Two sweepstakes casinos and their operator received a second wave of cease-and-desist letters from Maryland's…
Burlington, Iowa's Catfish Bend Casino and FunCity Resort is undergoing a name change. The arrangement…
Kalshi has moved to have a Wisconsin tribe's lawsuit against the prediction market dismissed, claiming…
In terms of development, expansion, and relevance, Las Vegas has significantly surpassed Reno since Nevada…
For Noah Vineberg, problem gambling is close to home. Before seeking treatment seven years ago,…