The head of NASDAQ’s North American markets stated on Thursday that in the future, betting on sports is likely to occur via exchanges and retail brokers like Robinhood Markets Inc. In June, NASDAQ took a stake in Sporttrade, a new start-up sports betting operator who plans on launching a New Jersey betting app by the end of this year. Last month, the exchange company even stated officially that it provided Sporttrade with surveillance technology.
Recently, Sporttrade gained momentum in Colorado thanks to the acquisition of Momentum Sports. With this move, the company is expecting to offer Colorado residents sports betting services in the first half of 2022.
The Exchange Model Will Bring Transparency and Competition to Sports Betting
With the new approach in sports betting using the exchange model, the industry will be provided with both competition and transparency. At the moment, sports betting is legal in almost 30 states in the US. Large states like New York, California and Florida are exploring launches and, as Tal Cohen, a NASDAQ representative, stated at the Securities Traders Association conference that the market could be worth as much as $37 billion by 2025. Another estimate by Joseph Greff, a J.P. Morgan analyst, predicts smaller numbers, though.
While speaking at the conference, Cohen added that better prices, better odds and lowered friction, as well as more data for bettors to look at when wagering, will be available. Liquidity providers and market makers will compete for a share, bringing additional innovation to the space.
According to Cohen, it would be a good idea and it would make sense for other brokerages such as Robinhood to enter the markets on events and predictions. He thinks that this is a natural evolution since the same customer segment that wants to purchase Bitcoin, Apple, has an interest in Sunday football, too.
Cohen added that with or without NASDAQ, sports betting will continue to grow and hence, the exchange operator is in a good position where it can potentially make the market far safer and more transparent by providing adequate technology. He concluded by saying that there are a few things that need to be thought of, including making sure that a culture of bettors does not come to life since the US is a country based on protecting the investors.
There’s no denying the fact that the betting and gambling industry will continue to grow, especially now, when the states have their right to regulate these industries however they seem fit.
Two propriety firms – Tower Research and Hudson River Trading – have also invested their money in Sporttrade. These two companies provide two-sided quotes in the process of trading and provide markets in various asset classes.