The Swedish betting giant Betsson remains attentive to prediction markets, although it does not believe the US event contracts model will work in the main jurisdictions where it operates.
Betsson’s CEO, Pontus Lindwall, stated that the group is following prediction markets “with great interest,” particularly regarding the customer experience these types of platforms offer.
However, Lindwall noted that “unlike what happens in the United States, where they operate under regulation distinct from gambling, the model does not fit most of the markets where Betsson has a presence,” specifically in Europe and Latin America.
This is what the CEO explained in a recent earnings presentation.
Prediction markets in the United States
Prediction markets are considered in the United States as “event contracts” (event contracts) and are subject to the regulatory system for financial derivatives and futures. Under federal law, they are overseen by the Commodity Futures Trading Commission (CFTC).
This has opened up a range of opportunities and advantages for companies like Polymarket and Kalshi compared to betting operators, which must obtain state licenses to operate legally in each jurisdiction.
Regulation of this type of platform is still in its early stages, but many experts insist that prediction markets operate in a legal vacuum.
At least 10 state administrations have pushed proposals to regulate these platforms within their jurisdiction, as they consider them to be betting, while the federal regulator asserts that they constitute financial instruments.
President Donald Trump has been a strong advocate of prediction markets and has pushed for the CFTC to have absolute regulatory authority over this sector, without states being able to intervene to limit its activities.
Several companies in the betting sector have already ventured into this booming segment. Last month, DraftKings announced the launch of DKeX, its own prediction markets exchange, and reported that DraftKings Predictions generated approximately 3.4 billion US dollars in annualized consumer volume.
Meanwhile, FanDuel, Flutter Entertainment’s flagship brand, has a prediction markets platform called FanDuel Predicts. In June, it expanded its offering through a partnership with Crypto.com and its derivatives market OG Prediction Markets.
The controversy surrounding prediction markets also arises because, under current regulations, these companies can offer their services in states where sports betting is not allowed or is strictly limited.
In this regard, Lindwall stated that “should prediction markets be allowed in the jurisdictions where Betsson operates, the activity would be subject to gambling regulations, so there wouldn’t be much difference from traditional sports betting.”
However, for the Swedish operator, “some aspects of the user experience on these platforms are undoubtedly interesting.”
It is worth mentioning that prediction markets differ from traditional betting companies by featuring simple interfaces and offering event contracts with binary yes or no answers. This can be especially appealing to younger audiences or less experienced players.