00:03 Speaker a
Sports betting stocks in the last month, when the forecasting markets have attracted a lot of investors, seeing their evaluations balloon within a few short months. The New York Times said Kashi raised $ 300 million on Friday, estimating $ 5 billion. This is after the Polymarket received an investment of $ 2 billion from the owner of the NSYS, with a $ 8 billion dollars. It is better to discuss the risk of sports better from these forecasting markets is JED Kelly, CEO of Oppenheimer, for consumer internet companies, including sports betting companies. Jed, thank you for being here.
00:46 Jed Kelly
Thank you for having me.
00:47 Speaker a
Thus, there is this really interesting dynamics that develops among more established sports betting companies and forecasting market companies, although of course there is a bit of a coincidence, as some sports betting companies also have forecasts for UH aspects. But how do you think about both sides and what will the competitive environment look like?
01:13 Jed Kelly
Yes, you know that its essence, I think they offer two different products. I think if you look at your traditional sports betting books, you know Fanduel and DraftKings, they offer better markets, more opportunities. And then when you start looking at the forecasting markets, shi and polymarkets, polymarket, their suggestions are slightly more limited. Another difference is that polymarket and kalshi, they are they are they are litigating now according to CFTC, so they offer it at the federal level. I think what happens, what happens to legitimacy? Will the forecasting markets be available to anyone working in sports in six months or 12 months, do you know if some of these states like we see in Nevada, Maryland or Massachusetts and California will get steam with tribes?
02:18 Speaker a
In other words, although the forecasting markets are now available throughout the country because they are supervised by CFTC, it may be that it may not be, you know, from now or now or when these claims continue.
02:34 Jed Kelly
That’s right because what is currently using Kashi is that under CFTC you can’t play games. However, they say that sport is not part of the games. States think they control games, right? So you have this dichotomy found out for what will eventually prevail. I think that at the moment, the consensus of the investors we are talking to is Kashi and PolyMarket can offer sports contracts for the next three years. Something can happen faster. It is difficult to predict. Hm, I am currently in mind that the polymarket, you can pick up, if you know, 40 %, sports contracts may not be available under CFTC by the end of the year. So there are many moving pieces. I think investors’ shares DraftKings and Futter usually decrease to keep from September goal. I think if September met expectations, these shares would be closer to where they traded, you know, just before work. So I think it just causes a lot of noise. I haven’t seen any, we have seen anything from a product, a prices perspective that will make us think they will take sharing. At the end of the day, you know, they are more likely to be different. And I believe when, you know, VCS and UH, ICE invested in Polymarket and Kalsi, you know, their hopes are 5, 10 years, sport is less part of their business.