The sports streaming service DAZN has signed an agreement with the prediction platform ADI Predictstreet to “exclusively create a new category of sports engagement.”
Under the agreement, DAZN and ADI Predictstreet will develop prediction market experiences for sports fans around the world, powered by the ADI Chain blockchain network.
Additionally, the companies “will work exclusively to create a new category of sports engagement,” which will allow fans to make predictions about live sporting events and other content while enjoying the experience on DAZN.
The alliance aims to capitalize on the boom in prediction markets, a segment that has experienced explosive growth in recent years.
DAZN and ADI Predictstreet plan to launch this initiative first in the United States, a priority market for both companies, once all necessary licenses, authorizations and regulatory approvals have been obtained.
“Prediction markets are becoming one of the most exciting and fastest-growing forms of digital fan engagement. This exclusive alliance combines ADI Predictstreet’s innovative regulated platform with DAZN’s global reach, its premium rights and its direct relationship with sports fans in more than 200 markets,” said Shay Segev, CEO of DAZN Group.
“Together we have the opportunity to create a completely new way for fans to engage with the sporting moments they are most passionate about,” he added.
For his part, Dimitrios Psarrakis, CEO of ADI Predictstreet, said that “prediction markets reflect what fans truly believe, and there is no more powerful or immediate source of collective conviction than live sport. Our shared ambition is clear: to build the leading regulated sports prediction market experience globally, with the United States as the cornerstone of our long-term strategy.”
This is not DAZN’s first foray into prediction markets. In January of this year, the company signed an agreement with Polymarket, one of the leading platforms in the segment.
Meanwhile, ADI Predictstreet became FIFA’s first official partner in the forecasting markets category in April.
Global Phenomenon
Prediction markets have gained enormous popularity, and their growth has sparked mixed reactions.
Countries such as Spain and Brazil have blocked or restricted access to these platforms, while Gibraltar has become the first territory in the world to create a specific regulatory framework to govern this activity.
The debate centers on whether prediction markets constitute financial instruments or whether, in practice, they operate as betting and should be subject to the same rules as traditional online gambling.
Supporters of these platforms argue that prediction markets function similarly to futures markets, since they allow thousands of people to express expectations about future events and help generate useful information.
Critics believe that these contracts can encourage excessive speculation, facilitate the use of insider information, and raise ethical dilemmas by allowing bets on wars and other life-or-death matters.
Nobody wants to be left out
According to a New York Times report, Meta is developing an app similar to Polymarket and Kalshi that would allow users to participate in prediction markets.
Mark Zuckerberg, CEO of Meta, recently formed a small team with which he began working on developing the app, internally called “Arena.” The app would operate independently from Meta’s existing social media platforms, including Facebook, Instagram, WhatsApp and Messenger.
The product is still in an experimental phase and there is currently no specific launch date. It is part of a broader initiative by Zuckerberg to develop new types of apps based on emerging online social behaviors.