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Bank of America analyst sees prediction markets challenging US sportsbooks

Regulation

Bank of America analyst Shaun Kelley said sports event contracts could either complement or disrupt sportsbook operators as prediction market firms enter the sector. He cited a possible CFTC roundtable and an expected decision on Crypto.com’s activity in late March or early April as potential sources of regulatory clarity; Nevada regulators have told Kalshi to stop operating in the state.

Regulatory decisions could affect prediction market operators’ ability to offer sports event contracts and the competitive position of sportsbooks.

End-of-day close DraftKings (DKNG), USD, to 2 May 2025
Story date3 February 20252 May 2025

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