Prediction Markets

Sweeps VS Prediction Markets: Very Different PR and Political Moves

Something extremely interesting happened when Prediction Markets started to gain attention.

The timing and the enemies made were very different.

Sweepstakes casinos started from within the gaming industry. To this day, many GSPs serve both real-money iGaming operators as well and sweeps casinos.

Prediction markets, however, were very bold and ‘outsiders’ in a sense. The problem is that prediction market operators have tried very dangerous waters: making enemies in traditional financial markets.

The financial markets have evolved from a start when stock exchanges were merely a way to finance and raise capital for companies, hundreds of years ago in Europe, to a playground of speculation and… bets.

Sweepstakes casinos tried their luck in a very well-defined gray area, and the ‘under-the-radar’ activity, especially after the recent regulations (back at the time) on sports betting, allowed a longer ‘easy start,’ in my opinion.

Prediction markets, however, fired in a much more complex direction, including events that have potential ‘liquidity’ in traditional financial markets.

Certain ‘correct guessing’ situations could allow one to trade efficiently on the NYSE, Nasdaq, and even complex derivative markets.

The gaming industry surely is big, but the global financial markets are much bigger. And so are the lobbying and good legal protection.

Gaming industry veterans know how to spot an opportunity, seize it, and navigate complex PR waters much more naturally than the stakeholders of prediction markets tried to do. It doesn’t mean they are not capable of it, but that’s not how I see their go-to-market histories in America.

In my opinion, the go-to-market was way too bold, and overly powerful enemies were made. Not to mention the possibility of allowing people with insider information in the political world to make an under-the-radar buck with a lot less scrutiny than on stock exchanges, for example.

Sometimes, expertise goes well beyond traditional verticals and products and translates into specific corporate experience, and the gaming industry is absolutely unique in this sense.