BetMGM CEO Adam Greenblatt has insisted the operator will not be a first mover in the potential prediction markets race.
Speaking on the Entain and MGM Resorts International JV’s Q2 earnings call, the CEO fielded several questions on the burgeoning sector, insisting he is keeping a close eye on proceedings.
The vertical got another jolt in the arm last week, as Polymarket announced its impending return to the US after acquiring QXC for $112m.
QXC is not yet live, but is licensed by the Commodity Futures Trading Commission (CFTC), essentially allowing Polymarket to bypass a lengthy ratification process to secures its own licences.
Earlier this year, reports emerged that DraftKings was eyeing up a bid for Railbird, another CFTC-licensed exchange that is not yet live.
Prediction markets and sports event contracts have exploded, with Kalshi at the forefront of proceedings in the US.
Legal wranglings remain ongoing in courts across the country, with state regulators and tribal entities claiming the offering is a form of unauthorised sports betting.
The final decision on sports event contracts’ legitimacy comes along with former Kalshi board member Brian Quintenz’s accession to the CFTC chairmanship being delayed.
He was due to appear before two confirmation hearings in the last few weeks. However, none of the sessions ultimately included a vote on Quintenz’s appointment.
Speaking on the earnings call, Greenblatt said: “We have the ability; we do not have the desire to be a first mover. Our state regulators have been very clear; our tribal partners have been very clear; 34 state attorney generals have been very clear.
“They do not believe prediction markets should offer sports contracts because that is sports betting. They would argue that is sports betting.”
On which firm will come out on top in the arms race, the BetMGM boss said that speed-to-market may not be the ultimate factor behind podium positions.
He added: “Prediction markets, generally, as very much liquidity driven. Does the first mover have an advantage? I think the advantage is conferred by liquidity, not who gets there first.
“The likes of Robinhood, Crypto.com and Coinbase whose ability to invest and grow a liquidity pool that far exceeds, I think, sports betting market incumbents.
“I don’t think BetMGM has a right to win in trying to become a leader in what is a very different market from a regulatory perspective, from a technical perspective and a risk management perspective.
“Frankly we won’t be surprised by anything in this domain. We are following it very, very closely. We are not underestimating the possibility that this becomes a meaningful factor in our sector, but we are not going to be a first mover.”
Looking at the JV’s earnings, BetMGM Q2 revenue was up 36% on the back of gains in online sports betting and igaming.
The post BetMGM CEO: We will not be a first mover in prediction markets race first appeared on EGR Intel.
Adam Greenblatt happy to take a slower approach while keeping a keen eye on proceedings, as he says state regulators have made their opinion clear on the matter
The post BetMGM CEO: We will not be a first mover in prediction markets race first appeared on EGR Intel.