Latest news with #predictionmarkets
Yahoo
5 days ago
- Business
- Yahoo
Kalshi CEO Talks AI's Impact on Prediction Markets
Kalshi CEO and co-founder Tarek Mansour discusses how artificial intelligence is impacting prediction markets and the company's business model on "Bloomberg Open Interest." Kalshi has partnered with xAI, the AI startup founded by Elon Musk, to bring Grok to predictions. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
5 days ago
- Business
- Bloomberg
Kalshi CEO Talks AI's Impact on Prediction Markets
Kalshi CEO and co-founder Tarek Mansour discusses how artificial intelligence is impacting prediction markets and the company's business model on "Bloomberg Open Interest." Kalshi has partnered with xAI, the AI startup founded by Elon Musk, to bring Grok to predictions. (Source: Bloomberg)
Yahoo
22-07-2025
- Business
- Yahoo
Polymarket Returning to U.S. with $112M Acquisition After Prosecutors Drop Probe
Polymarket, the crypto-powered betting platform known for its political prediction markets, is preparing a return to the U.S. after a federal investigation into its operations was dropped last week, the company said in a press release on Monday. The New York-based company is acquiring QCX, a regulated derivatives exchange, for $112 million. The Commodity Futures Trading Commission (CFTC) granted QCX approval to operate on July 9, two years after first applying for a license. The deal gives Polymarket a legal path back into the U.S., where it had agreed in 2022 to stop serving American users. At the time, Polymarket settled with the CFTC for operating an unregistered market and agreed to block U.S.-based traders. But despite that agreement, authorities later began investigating whether the company had failed to enforce that restriction. The Justice Department and the CFTC had been probing Polymarket for months. As part of that investigation, the FBI reportedly searched the home of founder Shayne Coplan in New York City. A Polymarket spokesperson told CoinDesk at the time the raid was 'obvious political retribution,' though the company did not elaborate further. With the investigation now dropped, Polymarket is shifting to a regulatory-compliant model through the QCX acquisition. The move will likely let it offer its popular prediction markets to U.S. users for the first time in years — this time under the oversight of financial regulators. Polymarket's rise to fame came during the 2024 U.S. presidential election, where its betting markets attracted attention for pricing political outcomes in real time. The platform lets users trade on the likelihood of future events using crypto, with topics ranging from elections to sports to geopolitics. By merging with a licensed derivatives platform, Polymarket appears to be betting that legal clarity, not legal battles, will drive its next phase of growth. The company has not said when it plans to relaunch in the U.S. Just last month, Polymarket was reportedly edging closer to a $200 million raise at a $1 billion valuation. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-07-2025
- Business
- Yahoo
As DraftKings Weighs Entry into Prediction Markets, How Should You Play DKNG Stock?
DraftKings (DKNG) is reportedly in talks to acquire Railbird, a federally regulated prediction market platform. This development signals the sports betting giant's expansion into a rapidly growing industry. Prediction markets have been gaining traction following the recent election cycle. Railbird, founded in 2021 by former Point72 analysts Miles Saffran and Edward Tian, received CFTC approval as a designated contract market in June, making it one of the few regulated prediction markets in the United States. The platform allows users to trade contracts on real-world events, including economic indicators, policy decisions, weather patterns, and sports outcomes. More News from Barchart Is Palantir Stock a Buy Above $150? Coinbase Stock Just Hit a New 52-Week High. How Much Higher Can Crypto Week Take COIN? This Bullish Catalyst for Nvidia Stock Is Coming in September Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. The acquisition interest follows DraftKings' failed bid to secure its own federal prediction market license. Meanwhile, competitor FanDuel has reportedly explored partnerships with established player Kalshi. For DKNG stock investors, the potential acquisition could diversify DraftKings' revenue streams beyond traditional sports betting, tapping into growing interest in event-based trading. However, the regulatory complexity and competitive landscape pose challenges. The acquisition would align with DraftKings' strategy to expand its digital entertainment offerings and attract new user demographics, thereby boosting long-term growth prospects in an increasingly competitive sports betting market. Is DKNG Stock a Good Buy Right Now? In Q1 2025, DraftKings reported revenue of $1.41 billion, an increase of 20% year over year. It reported an adjusted EBITDA of $103 million while maintaining strong operational momentum across key metrics. The company's Sportsbook handle increased 16% year-over-year to $13.9 billion, meeting expectations despite challenging March Madness outcomes. Its structural hold percentage improved to 10.4%, up 60 basis points year-over-year, driven by increased parlay betting and enhanced product offerings from recent acquisitions, such as Simplebet. Management revised full-year 2025 guidance to $6.3 billion in revenue and $850 million in adjusted EBITDA, citing $170 million in revenue headwinds from unfavorable sports outcomes year-to-date. However, core business fundamentals remain strong, with live betting now accounting for more than 50% of the total handle for the first time. DKNG continues expanding its AI capabilities while maintaining disciplined capital allocation, repurchasing $140 million in shares during the quarter. With $1.1 billion in cash, the sports betting giant expects to report $750 million in free cash flow this year. Key growth drivers for DKNG stock include improving promotional efficiency, rising structural hold rates from increased parlay adoption, and expanding live betting capabilities. The integration of Jackpocket into the main platform, planned for the second half, is expected to provide additional user engagement opportunities, supporting diversification beyond traditional sports betting. Is DKNG Stock Undervalued Right Now? Analysts expect DraftKings' revenue to increase from $6.3 billion in 2024 to $11.3 billion in 2029. Comparatively, adjusted earnings are forecast to expand from $1.31 per share to $3.82 per share, while free cash flow is projected to improve from $712.5 million to $2.6 billion in this period. Wall Street expects DKNG stock to benefit from economies of scale, widening its free cash flow margin from 11.3% in 2024 to 23% in 2029. If DKNG stock is priced at 25x forward FCF, which is a reasonable valuation, it could potentially triple over the next four years. Out of the 30 analysts covering DKNG stock, 25 recommend 'Strong Buy,' three recommend 'Moderate Buy,' and two recommend 'Hold.' The average stock price target for DKNG is $54, 25% above its current trading price. On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Bloomberg
13-07-2025
- Business
- Bloomberg
Would You Wear AI Glasses?
Welcome back to The Forecast from Bloomberg Weekend, where we help you think about the future — from next week to next decade. This weekend we're looking at whether anyone wants Meta's AI glasses, a rough quarter for prediction markets, bars getting quieter and more.
