Clash of Models

Polymarket CEO Shayne Coplan blasted traditional sportsbooks as a "scam" at Axios BFD and said he expects the Supreme Court to eventually decide whether prediction markets can offer their version of sports betting.

Why It Matters

Prediction markets have enjoyed a string of legal wins allowing them to offer sports betting via "events contracts" in the handful of states that haven't legalized gambling.

Driving the News

"I think at some point the Supreme Court will settle the matter," Coplan said.

  • Coplan argued that the traditional sportsbooks "all rip off the consumer" and argued that "none of them innovate."
  • He also criticized the current "patchwork" of state-by-state regulations on sports gaming and what he called the American "duopoly" of sportsbooks, DraftKings and FanDuel, for taking action against winning bettors.
  • Coplan acknowledged in the interview with Axios' Dan Primack that Polymarket doesn't currently make money but said "eventually we're going to take a cut."

The Other Side

A DraftKings representative had no immediate comment. A representative for FanDuel owner Flutter did not immediately respond to Axios' request for comment.

  • The Massachusetts Gaming Commission recently reported that 0.64% of bettors in the state are subject to sportsbook betting limits to prevent them from winning too much, according to SBC Americas.
  • Both DraftKings and FanDuel have recently taken steps to launch their own prediction market products in states where they don't currently hold sports gambling licenses.

Friction Point

Recent sports gambling scandals have raised concerns about easy access to betting compromising game integrity.

  • Coplan hinted that Polymarket has plans to combat corruption in sports.
  • "We've got some stuff in the works that I think will be a great improvement on what's existing," he said.