Bank of America Says Prediction Markets Pose Growing Threat to Traditional Sportsbooks
Summary
- A Bank of America analyst said prediction-market platforms are changing the competitive landscape of the U.S. sports-betting industry.
- Kelley said key strengths of prediction-market platforms such as Kalshi include their availability across all 50 U.S. states and the fact that users age 18 and older can participate.
- He said those differences in accessibility and eligibility are increasing competitive pressure on traditional sports-betting operators including DraftKings and FanDuel.
Forecast Trend Report by Period
Prediction-market platforms are reshaping the competitive landscape of the U.S. sports-betting industry, according to a new analysis. Platforms such as Kalshi are emerging as rivals to established sportsbooks including DraftKings and FanDuel.
Walter Bloomberg reported on October 23 that Bank of America analyst Shaun Kelley told the NextPredict Summit that Wall Street had underestimated the early growth potential and competitiveness of prediction markets.
Kelley cited nationwide availability as a key advantage for prediction-market platforms such as Kalshi, noting that they are accessible across all 50 U.S. states. He also pointed to their lower age threshold, with users 18 and older allowed to participate.
Those differences in access and eligibility are increasing competitive pressure on incumbent sportsbooks including DraftKings and FanDuel.
