Robinhood Markets (HOOD) has an event scheduled for December 16 that could create some ripples in the sports betting sector. The company’s YES/NO product launch will include an unveiling of the newest prediction market features.
Bank of America thinks that Robinhood (HOOD) may highlight a diminished reliance on Kalshi (KALSHI) due to its recently announced joint venture for a vertically integrated prediction market with Susquehanna Investment Group. “From our conversations, it seems like online sports betting investors are viewing any negative for Kalshi as a positive for OSB operators,but we think a large tech company such as HOOD investing more in the space is a competitive threat to DraftKings (DKNG) and FanDuel (FLUT),” warned analyst Julie Hoover.
The other big factor to watch is how competitive Robinhood (HOOD), Kashi (KALSHI), and Polymarket (POLYMARKET) are with event contract fees as they fight for attention with sports betting apps such as FanDuel (FLUT), DraftKings (DKNG), and BetMGM (MGM) (GMVHF) with their easily identifiable bonus bets, profit boosts, and other promotions.