Writing in CDC Gaming’s Tottenham Report column, Hannah Gannagé-Stewart said the crypto–iGaming crossover is not a hypothetical anymore. After speaking at ICE with Paysafe’s Zak Cutler, formerly in senior product roles at DraftKings and Jackpocket, she said he expects regulated operators in the US and beyond to add crypto payment methods within the next 12 to 24 months.
Prediction Markets Are Showing Up in the Numbers
Prediction markets have grown from election and macro markets to sports-like contract markets. For example, the Kalshi exchange offers yes/no bets, whereby the exchange charges fees rather than taking the house. Kalshi exchange reported that its Super Bowl markets recorded daily volumes of more than $1bn.
It is now visible within regulated channels. Nevada took a handle of $133.8m for Super Bowl LX bets, its lowest in 10 years, with prediction markets cited by the industry as a factor for this decline.
Europe Has Less Incentive to Switch, But the UI Can Still Spread
The situation is not the same in Europe, whereas in America, the oversight was onto something with the state-by-state situation. Sportsbooks are already easy to access, and betting exchanges have been under gambling regulations for decades.
However, some companies are of the opinion that making the presentation more streamlined and simple as a “yes/no” approach will lead to an expansion of the customer base. Matchbook has also announced its plan to launch what is claimed to be the first UK-licensed prediction markets product, as well as to provide this as a white-label B2B tool. Betsson AB, the online betting operator, whose CEO is Pontus Lindwall, has found this segment to be an interesting one but not within the core market scope.
Regulators Are Drawing a Clear Box Around the Product
There has been no ambiguity on this score in Great Britain. Brad Enright, Director of Strategy, defined prediction markets as platforms that trade event-based contracts. According to him, the underlying model is very closely aligned to a type of betting exchange under the UK legal framework. That points to a gambling licence route in the UK aside from spread betting, which is regulated by the Financial Conduct Authority.
Final Take
The “new normal” in Europe is likely integration rather than circumvention. Crypto is going to be another form of payment to regulate, and prediction market interfaces – another form of betting intermediary to regulate. The companies that manage to enter the market quickly and with clear definitions and integrity might have better chances to succeed in this environment.
