Flutter Entertainment Says Prediction Markets Don’t Threaten Sports Betting

Flutter Entertainment’s boss, Peter Jackson, is not in the least concerned about the rumored juggernaut that is prediction markets. In fact, where others fear the undoing of the sports betting vertical, Jackson’s company sees an opportunity.

Gambling Boss Says Prediction Market Fears Are Overblown 

To start with, Jackson took to the Morgan Stanley Technology, Media & Telecom Conference, where he spoke about the clash between the two verticals, i.e., sports gambling versus prediction markets, arguing that the former is holding its ground well, and it is probably a trend that is going to last.

He credited the consumers, arguing that FanDuel’s Missouri launch indicated that people preferred regulated sportsbooks over unregulated prediction markets. 

He is not the first person to have suggested that prediction markets are hardly the sports wagering vertical’s undoing, with previous research from ARK Investment Management and Fidelity Portfolio arguing that prediction markets would not end up killing the sector.

However, Fidelity Portfolio acknowledged that they may give sportsbooks – especially those that are not DraftKings or FanDuel – a good run for their money in the short to mid-term. 

Jackson similarly believes that another strength that traditional sportsbooks have lies elsewhere – in promotional spending, which is arguably easier to disburse as a regulated bookmaker than it is as a prediction market platform. 

Another thing has to do with the fact that prediction markets may be waddling in sports betting territory, but they are hardly scratching all the itches sports players expect. 

Prediction Markets Don’t Offer the Full Sports Betting Monty 

The Yes/No binary options are a great catch for some juicier and more sensationalist bets, argues Jackson, but this is hardly all there is to a sports bettor, who may expect a much fatter spread when it comes to what their wagering options are. 

Prediction markets are also pummeled by regulators, with at least one new trade group – Gambling Is Not Investing – springing up to challenge the expansion of these platforms.

A Nevada judge dealt a heavy blow to prediction markets only recently, possibly prompting platforms to expedite their case to the Supreme Court (where it is eventually going to land anyway, according to insiders). Fears for consumer safety are also widespread, as J&Y Law experts like founder and managing partner Yosi Yahoudai recently remarked that these platforms are built to be addictive.