The worlds of sports betting and stock trading have never been more closely connected.
And bringing these two industries together is one key product: event contracts.
In mid-August, Robinhood announced it would begin rolling out event contracts for college and professional football. A day later, sports betting giant FanDuel said it would soon be offering its users event contracts on financial products ranging from stocks and bitcoin to oil and gold.
Event contracts offer users a binary yes-or-no choice on a defined event. For instance: Who will win the game between the Philadelphia Eagles and Dallas Cowboys on Sept. 4? Will the price of gold close above or below $3,500 an ounce tomorrow?
