Investors may perceive Meta’s exploration of prediction markets as increased competition for Flutter Entertainment, Jefferies Equity Research analyst James Wheatcroft wrote in a 24 June investor note, but cautioned “it’s not that straightforward, in our view. ”
“We see regulatory, product and data moats that will protect online sports betting operators in the US and internationally,” Wheatcroft explained.
The analyst’s reassurances came on the heels of Meta announcing Arena, an event-contract service. According to the New York Times, the application would not provide real-money betting and would be discrete from Meta’s social-media offerings.
“We sense the prediction markets narrative is evolving, with the initial perception of a structural threat to online sports betting steadily morphing into prediction markets being incremental,” Wheatcroft resumed.
