Prediction markets just a marketable name for gambling – L&L Europe CEO

Christopher Dalli, CEO of Malta-based online gaming operator L&L Europe, argued that prediction markets are little more than gambling under a different name.

During a recent debate at the NEXT Summit, Mr Dalli said that prediction markets should just be referred to as sports betting.

“Prediction markets are a marketable name that makes it sound like it’s tied to a nice story which is that they’re predicting a future event,” he said. 

“Anything to avoid the connotation that it could be mistaken for gambling.”

To drive his point home, he pointed out that many precaution market operators use gambling terminology when promoting their platforms.

“They say you can bet in 50 states, you can bet on your favourite team, you can follow sports everywhere.”

“If it’s so innovative and cool, why is it only working where you don’t have an alternative to regulated sports betting? 

Mr Dalli was debating against Noah Traisman, the CEO of US-based Winable, who claimed that prediction markets are an upgrade on sports books, which he said “sell opinions as a product, come up with a line and take a 10 per cent edge”. 

The two also clashed on the thorny topic of whether insider training is rampant within prediction markets, with Mr Dalli arguing that consumers are essentially betting against the house without being told they are.

“It’s not peer-to-peer, but we’re telling them it is. That kind of misleading information isn’t acceptable,” he said. 

Mr Traisman countered that many regular traders aren’t fully aware of how the stock market functions either, and that prediction market users can adapt their behaviour accordingly if they notice a whale controlling the market. 

Cover photo: NEXT Summit