This podcast discusses the disruption of the U.S. sports betting industry by prediction markets. Mike Cyprys interviews Stephen Grambling, covering the current organization and regulation of the sports betting industry, explaining the mechanics of betting exchanges, and defining prediction markets more broadly. Grambling highlights the current state of sports betting legalization across the U.S., noting that only a few large states remain without legalized sports betting. Cyprys explains how prediction markets function and their potential for growth, particularly in the context of sports betting. The discussion concludes with an assessment of the potential financial impact of prediction markets on the existing sports betting industry, estimating hundreds of millions of dollars in potential incremental EBITDA for incumbents.
