Prediction markets are reshaping the battle for U.S. sports bettors, pushing the country’s largest operators toward another customer acquisition fight just as the industry had begun emphasizing profitability over market share.
Leading sportsbook competitors are set to engage in “very aggressive, irrational” spending.
One major book views its prediction market as a way to acquire customers in states without legal online sportsbooks.
Sportsbook operators spent billions in the early years of U.S. sports betting expansion and appear to be taking a similar approach to growing their prediction market products.
DraftKings, FanDuel, and PENN Entertainment are among the major sportsbook operators that used their second-quarter earnings calls to outline disparate approaches to an industry whose focus is becoming more dominated by the growing prediction market industry.
