DraftKings Partners with Polymarket to Offer Prediction Markets
DraftKings acquired Railbird, a CFTC-licensed trade, to construct its personal prediction market. Polymarket is seemingly partnering to function because the clearinghouse of this new service.
So far, this announcement hasn’t triggered a lot friction between conventional playing and dangerous Web3 betting. Still, consultants are elevating considerations about harmful fallout for the economic system and society itself.
DraftKings to Launch Prediction Market
Prediction markets like Kalshi and Polymarket have had a lot of recent success shifting into the world of sports activities playing, and other Web3 firms like Robinhood have been doing the identical. It’s solely pure, then, that the method would occur in reverse, as DraftKings is launching a prediction market.
DraftKings, a preferred sports activities playing app, was exploring Web3 four years ago, so a prediction market looks like a logical subsequent step.
According to the agency’s press release, it acquired Railbird, a CFTC-licensed trade, to make it occur. Railbird’s staff and infrastructure will assist get this new market operational.
Polymarket Salutes New Deal
At first look, it looks like established Web3-native prediction markets would possibly disapprove of DraftKings’ new play, particularly as a result of sports activities playing is so profitable. However, this sector is already a proving ground for interactions between TradFi and crypto.
Moreover, this new enlargement comes with no less than one specific partnership. Shayne Coplan, CEO of Polymarket, praised the Railbird deal, claiming that his personal firm will function DraftKings’ clearinghouse for its new prediction market:
Plus, Polymarket has been expanding recently, with massive institutional inflows powering new product offerings in a number of areas. The prediction market doesn’t have a robust motive to begrudge DraftKings’ personal enlargement, particularly since Polymarket itself will instantly profit.
Possible Downstream Consequences
Still, although, DraftKings might solely intensify considerations that prediction markets are dangerous for finance. Tech journalist Jason Mikula called the Railbird deal a “convergence between finance/investing and literal playing,” warning of attainable hazard.
As the road between institutional investments and legalized sports activities betting will get blurrier and blurrier, numerous new issues might come up. Even if rampant hypothesis doesn’t gas a monetary implosion, which may be very believable, playing is extraordinarily addictive and dangerous.
In different phrases, the continued entry of playing into the TradFi economic system might be problematic in its personal proper. As these platforms turn out to be more and more normalized, atypical followers will discover it simpler and simpler to bankrupt themselves.
The submit DraftKings Partners with Polymarket to Offer Prediction Markets appeared first on BeInCrypto.
