【Willbet Slots game online】JMP: DraftKings 'rooting for' positive prediction markets ruling from CFTC

JMP recently hosted several members of DraftKings executive team, including CEO Jason Robins and CFO Alan Ellingson, for an investor meeting at the business’ Boston HQ.

At this meeting, the analysts quizzed the executive team on several themes, most pertinently the business’ potential entrance into the prediction markets space.

This followed the US derivative regulator’s recent turn towards a much more positive view on these offerings following the Trump administration taking office in January.

Many in the industry have speculated the sports betting operator will make a serious effort to enter the space, not least because an entity called “DraftKings Predict” has been registered with the National Futures Association.

DraftKings, JMP said, is “rooting for” a positive ruling from the CFTC at its round-table next month before committing more seriously to the product.

JMP highlighted the current offerings and UI/UX from existing companies are nowhere near as established as existing gambling platforms.

The analysts said: “DKNG should carry an advantage with its ability to leverage cross-sell vehicles like DK Horse, Fantasy, and brand awareness stemming from its national marketing campaigns.

“Speed to market, which includes building out the product, will be key, but given the product is an exchange, the initial infrastructure will need to be rented from an outsourced company and yet, over time, migrated in house.”

Established sports betting companies would have an advantage in the space, JMP argued, due to their existing scale and liquidity, which are both vitally important for betting exchanges.

As such, the analysts highlighted prediction markets like Kalshi could be potentially viewed as acquisition targets by more established companies.

Robins: Jackpocket Texas issues a ‘unique situation’

JMP also questioned DraftKings on Texas’ decision to shutter the business’ recently acquired Jackpocket lottery courier service.

Robins reportedly called it a “unique situation”. While the analysts highlighted New Mexico has also done so, they conceded the closures appear to be one-off events for now.

DraftKings, they added, is looking for ways to offset the revenue impact, which management does not believe will impact guidance.