The head of DraftKings Predictions has called on the Commodity Futures Trading Commission (CFTC) to create a “level playing field” for prediction market platforms.
Last October, DraftKings acquired CFTC-licensed exchange Railbird, and in December launched its standalone predictions market app as a CFTC-registered introducing broker.
Speaking during a panel session at SBC Summit Americas last week, Jeanine Hightower-Sellitto, senior vice-president and general manager of DraftKings Predictions, argued the CFTC should require any operators offering event contracts go through a similar process to “level the playing field”.
She said: “Everybody’s in favour of integrity in the marketplace. It helps the business grow, it provides trust for the customers and the products that they’re trading.
“For DraftKings, the other thing that’s important for us when we think about market structure is fairness in marketplace, how exchanges compete against one another, and for us, an ideal market structure would be one in which there’s a level playing field among operators in the space.
“Some of us have opted for a traditional approach where we use an DCM [designated contract market] intermediary to come to send out orders to marketplaces, our own exchange, as well as other third-party exchanges, both for a broker that has its own set of regulations under the NFA [National Futures Association], and we think that’s great for markets.
“We think it’s great for the customer. It provides a lot of oversight on customer funds being segregated, it provides oversight in terms of how marketing is done to these customers so that they’re treated fairly.
“We would like to see the CFTC require those same structures, or similar structures, to level the playing field for disintermediate exchanges, those that are onboarding customers direct to the exchange so that customers can afford the same protections.”
Hightower-Sellitto’s comments came as the CFTC announced proposals for new rules for prediction markets that permit most types of sports contracts but not casino-style event contracts.
Last week, the CFTC approved sports betting exchange startup ProphetX’s dual application to register as a DCM and derivatives clearing organisation.
FanDuel also entered into a partnership with Crypto.com’s CFTC-regulated exchange and clearinghouse, OG Prediction Markets, to expand its prediction market offering.
The Flutter-owned brand’s first foray into the space came via a partnership with CME Group, operator of financial derivative exchanges including the Chicago Mercantile Exchange.
Crypto.com is also a prediction markets partner with Underdog, with the DFS operator acting as broker for the crypto exchange’s DCM and DCO.
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Jeanine Hightower-Sellitto comments come as derivatives regulator issues proposed new rules on the type of event contracts that can be offered
The post DraftKings Predictions SVP urges CTFC to introduce “a level playing field” for the industry first appeared on EGR Intel.