DraftKings Considers Political Betting in the Wake of the Election

The US presidential elections are now over, cementing Trump’s return to the White House. Sports betting giant DraftKings is already looking far ahead, eyeing political betting opportunities for the next election.

A Very Different Framework

In a conference call, the company’s chief executive officer, Jason Robins, acknowledged the intense political betting activity. He called non-sports betting prediction markets a “very interesting thing” and admitted that his team is eyeing the sector.

Robins believes that non-sports betting prediction markets can go beyond political betting, although he conceded that political betting seems to be all the rage right now. In any case, the CEO noted that his team plans to explore similar opportunities ahead of the next election, and perhaps even sooner.

Prediction markets, however, are regulated differently, meaning that DraftKings will have to adapt. Unlike gambling, such operators are regulated by the Commodity Futures Trading Commission, which employs a vastly different framework. Robins noted that these difficulties might push political betting down the priorities list but added that his team would still consider it.

DraftKings May Further Popularize the Vertical

As one of the biggest sports betting operators in North America, DraftKings would be poised to capitalize on political betting. This potential move would diversify the company portfolio and help it to add more consistency to its business.

Launching non-sports betting prediction markets would be entering unfamiliar territory for the company. Still, it could help DraftKings achieve more consistent profitability, reinforcing its business.

More importantly, as one of the big names in betting, DraftKings’ foray into political betting could potentially further normalize the vertical amid concerns about the vertical’s impact. Some have been wary of the effect such products may have on society, while others have pointed out that prediction markets could end up having an effect on the wider world of finance.

While literal political betting is generally prohibited, US companies have sought to avoid that by registering as financial markets in order to offer prediction-based products.

In other news, DraftKings’s CEO just highlighted strong growth potential in the online sports betting vertical, underscoring the diverse opportunities available to his company.