Bank of America Says Prediction Markets Pose Growing Threat to Traditional Sportsbooks
Summary
- Prediction-market platforms are changing the competitive landscape of the U.S. sports-betting industry, increasing the threat to sports betting operators.
- Bank of America analyst Shaun Kelley said Wall Street had underestimated the growth potential and competitiveness of early-stage prediction markets.
- He said the ability of prediction-market platforms such as Kalshi to reach all 50 U.S. states and allow participation by users 18 and older is increasing competitive pressure on DraftKings and FanDuel.
Forecast Trend Report by Period
Prediction-market platforms are reshaping the competitive landscape of the U.S. sports-betting industry, with platforms such as Kalshi emerging as rivals to established operators 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 across all 50 U.S. states as a key advantage for prediction-market platforms such as Kalshi. He also said allowing participation by users age 18 and older distinguishes them from traditional sports-betting operators.
Those differences in access and eligibility are increasing competitive pressure on incumbent sportsbook operators such as DraftKings and FanDuel.
JH Kim
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