Crypto.com has signed a definitive agreement with online casino company High Roller Technologies as part of the cryptocurrency exchange’s move into prediction markets in a challenge to companies like Kalshi and Polymarket.
In a Tuesday notice, High Roller said the deal with Crypto.com would allow the crypto exchange to launch “an event-based prediction markets offering” to US-based users. The notice emphasized that the event contracts would be offered via CDNA, a Commodity Futures Trading Commission (CFTC)-registered exchange, at a time when US state gaming authorities are cracking down on prediction markets.
“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,” said High Roller CEO Seth Young.
Crypto.com’s move into prediction markets is the latest example of a crypto exchange attempting to enter what could become a $1 trillion market by 2030. Binance integrated similar features on its wallet app last week through an arrangement with Predict.fun, a prediction market platform on the BNB Chain.
Related: Polymarket bets removed from Google News after brief appearance: Report
High Roller’s (ROLR) stock price on the NYSE American more than doubled following the announcement, to $10.77 from $5.20.
While the CFTC and prediction markets like Kalshi have claimed in court that federal commodities laws preempt state gaming laws, the companies continue to face legal challenges in multiple jurisdictions. Cointelegraph sought a comment from High Roller but did not receive an immediate response.
Bernstein analysts expect prediction markets to move away from sports bets
According to a Tuesday report from analysts at wealth management company Bernstein, while event contracts on prediction markets centered around sports are the entry point for many of the platform’s users, they are “not the endgame.” The analysts expect the share of sports-based event contracts on the prediction platforms to fall from about 62% to 31% by 2030 as other markets take over.
“We expect the institutional market to develop around economics, business and political contracts, as investors seek more direct and discrete exposure to events,” said the Bernstein analysts. “We also expect hedging demand from corporates and insurance firms exposed to specific event risks.”
Magazine: Should users be allowed to bet on war and death in prediction markets?