NASDAQ Predicts Entry of Retailers in Sports Betting

NASDAQ Predicts Entry of Retailers in Sports Betting

The head of the North America Market of NASDAQ made a statement on Thursday. The statement mentioned that it is likely that in the future, exchanges and retail brokers would be involved in sports betting. Sports betting would be done via intermediaries such as Robinhood Markets Inc. In June 2021, NASDAQ acquired a stake in Sporttrade. It is a sports betting operator and is a new start-up.

In September 2021, the exchange company stated that surveillance technology would be provided to the new start-up sports betting operator. The new start-up sports betting operator has gained momentum in the state of Colorado because of its acquisition of Momentum Sports. The company expects to offer sports betting services to residents of Colorado in the first six months of 2022.

New exchange model to bring competition and transparency to sports betting

The exchange model brings with it a new approach to sports betting. The new model is expected to bring transparency and competition to the sports betting industry. At the present time, there are thirty states in the United States that have legalized sports betting. The large states such as Florida, California, and New York are exploring their launches.

Tal Cohen, a NASDAQ representative commented at the Securities Traders Association that by 2025, the sports betting market could be estimated to be valued at $ 37 billion. Another estimate was given by Joseph Greff who is an Analyst at J.P.Morgan. He has however predicted a smaller number than Tal Cohen.

Cohen stated that better odds, lowered friction, better prices as well as more data for betting for people placing bets will be available. There will be competition amongst liquidity providers as well as market makers for a share. This will bring more innovation to the sports betting industry.

Should other players enter the market?

Cohen further states that it would make good market sense for other brokerages such as Robinhood to enter the market on predictions and events. He states that this is part of natural evolution in the market.

sherlock

About sherlock

Sherlock Gomes loves to write and express his views on anything related to Gaming, Gambling, & Casino. He has been covering Gaming for more than two years now.