Betr is taking a measured approach to prediction markets while keeping its primary focus on growing its existing daily fantasy and arcade-style gaming products.
Key Takeaways
- Betr is prioritizing its Picks and Arcade products while only exploring prediction markets
- The company operates both fantasy picks and arcade games within a single app and wallet
- Sportsbook expansion beyond Ohio and Virginia is on hold
CEO Joey Levy said the company is evaluating its options in the emerging market but emphasized that the business is concentrating on Betr Picks and its recently introduced Arcade app.
The operator, co-founded by Levy and Jake Paul in 2022, has expanded its product line in recent months to include peer-to-peer play across fantasy picks and skill-based games, which are both offered on the same app, under one wallet system, which Levy explained offers a “far more seamless cross-sell experience” compared to other competitors.
He added that upcoming products will differentiate Betr further and provide players with more entertainment options, while also improving retention and customer value. Although the company is aware of industry momentum around prediction markets, Levy said this is not yet a top priority.
Expansion is on hold while the company focuses on fantasy and arcade development. Levy suggested the business will continue monitoring regulatory and competitive developments in prediction markets before making firm commitments.
DraftKings considers cautious entrance into prediction markets
Betr isn't the only platform exploring prediction markets. DraftKings, says CEO Jason Robins, is taking its time developing a strategy for prediction markets, at least for the present. He added that the company must balance the opportunity against the threat quite delicately, primarily against competition with state-regulated sports betting markets.
Robins also outlined that while the feds have been keen on prediction markets, the same cannot be said for the states. DraftKings would target states that have not legalized sports betting if it chooses to introduce such products, reducing overlap between its sportsbook operations.
Underdog and Crypto.com partner to launch sports prediction markets
Another daily fantasy sports operator, Underdog, has entered the prediction market sector through a new partnership with Crypto.com, rolling out sports-focused contracts across 16 states. The launch positions Underdog as the first sports betting operator to formally offer prediction markets in the U.S.
The initial contracts on offer include markets for the NFL, NBA, MLB, and college football games, allowing users to buy and sell positions on the outcomes of games through pricing determined by market activity instead of bookmakers.
Underdog CEO Jeremy Levine said sports are likely to drive the growth of prediction markets, though the sector is still in early stages. With Crypto.com's incorporation of payment solutions and blockchain infrastructure, the cooperation also highlights surging demand for decentralized solutions in gaming.
The alliance follows rising activity in this segment. FanDuel has joined forces with CME Group to introduce financial event contracts, and Robinhood is also looking to expand its prediction markets to include NFL and college football contracts.
