Prediction markets could be a viable alternative to online sports betting. That was the opinion of J.P. Morgan analyst Daniel Politzer in a 2 September investor note.
Timing his report to the kickoff of NFL season, Politzer deemed exchange-traded wagers a potential market-expansion opportunity that was “too good to pass up.” He emphasized the potential for DraftKings and FanDuel.
“However, prediction markets’ growing popularity has drawn scrutiny from OSB stakeholders, including state gaming commissions, tribes, sports leagues, and responsible-gaming advocates,” Politzer allowed. He felt OSB providers were “now between a rock and a hard place.”
