Prediction markets are coming to social casinos, as MyPrize has formed a partnership with Crytpo.com to launch a platform for event contracts based on sports, crypto, politics, and more.
MyPrize Markets, a product marrying social gaming and prediction markets, will be created under the arrangement.
The new partners are embracing the notion that mainstream audiences, not just experienced investors, will gravitate toward prediction markets.
“MyPrize Markets is a reinvention of the prediction market status quo, and prioritizes an elegant, frictionless, and user centric experience,” the press release announcing the deal reads. “Today, prediction markets are for traders; but soon, MyPrize is bringing markets to everyone for the first time.”
MyPrize boasts a million-plus users.
“Together we will lean in and deliver fun and engaging experiences for our players and bring major enhancements to the social, livestreaming content, and community engagement that the MyPrize platform fosters,” Zach Bruch, Founder & CEO of MyPrize, said in the statement.
Crypto.com extends prediction markets reach
Crypto.com, meanwhile, is building a stable of prediction market partners.
The digital currency exchange struck an agreement with Underdog in September to offer prediction markets in 16 states where sports betting is not legal, and just this week, the company announced a partnership with Hollywood.com for entertainment-based event contracts. Crypto.com has also teamed up with Trump Media to launch a prediction market product available via the Truth Social media platform.
“We are seeing a massive change in how financial markets are converging with other products,” said Travis McGhee, Managing Director, Global Head of Capital Markets at Crypto.com. “… Together, we [and MyPrize] are positioned to grow, innovate, and be the leader in prediction market products, which allow information discovery of what matters to retail users.”
Casino games coming to prediction markets?
While there’s been speculation that casino-style games will ultimately find their way onto prediction markets, there’s no mention of such products in the press release. Slots, roulette, blackjack and baccarat are among the current offerings on MyPrize.us.
Prediction markets are designed as economic hedges. That’s the justification, at least, for why they’re permitted by the Commodity Futures Trading Commission.
Some find this explanation dubious when it comes to some of the markets offered on these platforms, Kalshi being the prime example. Is a team covering the spread in a football game really an economic hedge? How about a multi-leg sports event contract, akin to a “parlay” in sports betting parlance?
To many gambling and financial industry observers, it’s a stretch to make the affirmative case in these arguments.
Should prediction markets venture into casino games, the argument would become even more difficult for these observers to buy.
Circumventing states
While sweepstakes casinos are being shown the door by an increasing number of states, prediction markets could be their way around state regulations, at least until there’s a firm legal or regulatory decision on whether a sports event contract or a spin of the roulette wheel constitutes a legit financial instrument.
States claim that by facilitating play with virtual currency redeemable for cash, sweeps are operating as illegal casinos. They are making a similar case against prediction markets that are offering sports event contracts, asserting these companies are operating as illegal sportsbooks.
Prediction markets, though, are regulated by the CFTC and believe they have the right to operate in all 50 states. This dynamic is unlikely to change under the Trump administration.
With the blessing of CFTC and partnering with an exchange approved by the agency, MyPrize could be forging a new path for sweepstakes casinos.
