Crypto.com enters prediction market space via High Roller partnership
The cryptocurrency platform's strategic partnership positions it to compete with established players like Kalshi in the prediction markets sector, which analysts forecast will reach $1 trillion valuation by the decade's end.
The cryptocurrency exchange Crypto.com has entered into a definitive partnership agreement with High Roller Technologies, an online casino operator, marking the exchange's strategic entry into the prediction markets sector where it will compete directly with established players such as Kalshi and Polymarket.
According to an announcement released on Tuesday, High Roller indicated that the partnership arrangement with Crypto.com will enable the digital currency exchange to introduce "an event-based prediction markets offering" targeted at users located in the United States. The announcement highlighted that these event contracts will be made available through CDNA, an exchange that maintains registration with the Commodity Futures Trading Commission (CFTC), occurring during a period when gaming regulators at the state level across the US are intensifying their enforcement actions against prediction market platforms.
"We believe this partnership gives us a strong starting position in a market with meaningful long-term potential, and we're confident in our ability to deliver,"
Seth Young, High Roller CEO
The strategic expansion by Crypto.com into the prediction markets arena represents another instance of a cryptocurrency exchange making moves to participate in what industry observers anticipate could evolve into a market worth $1 trillion by 2030. Just last week, Binance incorporated comparable functionality into its wallet application through a partnership with Predict.fun.
Following the public announcement of the partnership, High Roller's (ROLR) share price on the NYSE American experienced dramatic growth, more than doubling from $5.20 to reach $10.77.
Despite assertions by the CFTC and prediction market operators like Kalshi in legal proceedings that federal commodities regulations supersede state-level gaming statutes, these companies remain embroiled in legal battles across numerous jurisdictions. Cointelegraph reached out to High Roller for commentary but had not received a response at the time of publication.
Bernstein analysts expect prediction markets to move away from sports bets
In a research report published on Tuesday by analysts from Bernstein, the wealth management firm, predictions suggest that although event contracts on prediction market platforms currently focused on sports betting serve as the primary entry point for most users on these platforms, sports wagering is "not the endgame." The firm's analysts project that the proportion of sports-related event contracts on these prediction platforms will decline significantly from approximately 62% to 31% by the year 2030 as alternative market categories gain prominence.
"We expect the institutional market to develop around economics, business and political contracts, as investors seek more direct and discrete exposure to events. We also expect hedging demand from corporates and insurance firms exposed to specific event risks."
Bernstein analysts