Wall Street was slow to take prediction markets seriously
Bank of America analyst Shaun Kelley says prediction markets have taken share from sportsbooks such as DraftKings and FanDuel, helped by nationwide access and an 18+ age limit.
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what happened
Market Talk reports that Bank of America analyst Shaun Kelley, speaking at the NEXTPredict summit in New York, said investment banks were at first uninterested in prediction markets. The platforms nevertheless went on to disrupt the traditional sportsbook business, which is dominated by DraftKings and Flutter Entertainment's FanDuel.
According to Kelley, the newcomers had several advantages that helped them get around the obstacles facing bookmakers. They can operate in all 50 states and are open to anyone aged 18 or older, which gives them a wider audience.
why it matters
For investors, the story signals a shift in the balance of power in the gambling entertainment segment. Competition from prediction markets could pressure market share and revenue at betting companies, which puts DraftKings and Flutter in focus.
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- Wall Street Was Initially Skeptical of Prediction Markets — Market Talk, 23 October 2026 at 15:33 UTC
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