Casino prediction markets could be here sooner than the industry thinks, if you believe PENN Entertainment CEO and President Jay Snowden.
Speaking on the operator’s third quarter earnings call, Snowden reflected on the industry topic of the year in the US – prediction markets – which he warned are “a major threat to the industry”.
The bold prediction from the PENN CEO came as he was asked about the possibilities of casino mechanics as it relates to either prediction markets or prediction market overlays.
“I would be shocked if prediction market operators, as they’re raising money at significant valuations and seem to be doubling every few months, aren’t talking about this,” Snowden said.
“If you can move forward with prediction markets and sports gambling, what would stop you from offering prediction markets and contracts on the next spin of a slot machine? The next hand of blackjack? The next spin of the ball for a roulette table? This is existential. We’re going to be talking about this in a matter of months, not years.
“I think as an industry, we’ve got to play offence and figure out how we stay ahead of this. We’ve got to come together quickly. We don’t have a lot of time here and I think there are some natural opportunities and some natural solutions here. Should we be looking at a prediction model launch along those lines? Maybe.
“I think there are other paths that could be a lot more effective, that would more level the playing field and allow us to do what we do best and offer great products and experiences that would be better than what they can offer, but we do need to work with the other constituencies in the space.”
Snowden’s comments on potential casino prediction markets come in the midst of the fallout from PENN’s early termination of its ESPN agreement, with digital focus for the operator now shifting to US iCasino and Canadian markets, as well as a rebrand of its US online sports betting offering to theScore Bet.
