The CEO of Polymarket believes that state-licensed sportsbooks are a “scam,” according to comments he made at Axios BFD.
Shayne Coplan flipped the script on a controversial debate regarding prediction platforms, suggesting that the “status quo” with sportsbooks is predatory to consumers.
Key Takeaways
- Shayne Coplan described how sportsbooks chase away winning customers and rip off their users.
- Polymarket is one of several prediction platforms that have offered sports event contracts.
- Coplan said that he believes the Supreme Court will eventually rule on the fate of sports contracts.
Coplan didn’t pull any punches when speaking at Axios BFD, an annual summit that highlights developments in technology, finances, and related industries.
On top of calling out popular betting platforms, he criticized the “patchwork” gaming regulatory standards, which differ greatly by state.
For example, Florida only allows customers to bet on sports at Hard Rock Bet due to a gaming compact with the Seminole Tribe. The state also does not allow consumers to wager on college player props.
Conversely, Michigan allows a maximum of 15 online sportsbooks, all of which are authorized to provide customers with college player prop betting odds.
“None of them innovate,” Coplan said. “[All sportsbooks] rip off the consumer.”
Coplan also challenged FanDuel and DraftKings, which he called the “duopoly” of sports betting, while noting Fanatics and BetMGM as two challengers.
“It’s so expensive that no new entrants can enter the market,” he continued. “You can only trade against the house. They can go and ban you if you make money, and they can profile you as a user to change the prices based off of you. That’s a scam.”
Enjoying Covers content? Add us as a preferred source on your Google account
Calling out sportsbooks
Prediction markets, especially those offering sports contracts, have drawn the ire of gaming regulators and general critics of gambling for “circumventing” standard regulatory rules. Platforms have responded by claiming that they are compliant with the rules established by the Commodities Futures Trading Commission, meaning they do not need to adhere to state regulators.
The result is that prediction platforms are allowed to offer sports contracts in states where sports betting might not be legalized. But according to Coplan, that’s a positive, given the nature of how sportsbooks operate.
“You can’t expect to run a business that is that rigged against the consumer in perpetuity,” he said. “[Sportsbooks are] basically an entertainment app that’s rigged against you; they take the odds, what you see on Polymarket, and they apply a very large vig, and they sort of obfuscate that you’re getting ripped off.
Sports betting wasn’t legalized federally until the Supreme Court struck down a previous decision in 2018. That case opened the door to states having the power to legalize sports betting within their jurisdictions.
While sports contracts are gaining steam, Coplan believes a similar course will follow for prediction platforms.
“I think at some point,” Coplan said when asked if he believed there would be a Supreme Court case involving prediction platforms.
Snowballing momentum
Coplan’s bold claims come on the back of Polymarket last week agreeing to become the official prediction market partner of the UFC and signing a partnership deal with PrizePicks. The latter will help the popular fantasy sports app offer event contracts in markets including sports, entertainment, and pop culture.
Many state regulators have tried to quell prediction platforms’ surge in popularity. However, both DraftKings and FanDuel this week agreed to exit the American Gaming Association due to their plans to launch prediction markets, suggesting that they aren’t going away any time soon.
