October 7 (Businesshala) – Sports betting through exchanges and retail brokerages such as Robinhood Markets Inc. will likely in the future, the head of North American markets at Nasdaq Inc. said on Thursday.
Nasdaq took stake in June Here At SportTrade, a start-up that plans to launch a sports betting app in New Jersey by the end of the year, and last month the exchange operator said it was providing the company with market monitoring technology.
Bringing an exchange model to sports betting would bring competition and transparency to the industry, which is now legal in 25 states, with large states such as California, Florida and New York seeing it, and some estimate to be worth $37 billion by 2025. Nasdaq’s Tal Cohen said at the Securities Traders Association conference.
“In terms of competition, we will have liquidity providers, market makers, compete for business, which means better prices and better odds, and less friction, and this also means that when you are betting, your There will be more data to see nearby,” he said.
Hudson River Trading and Tower Research, proprietary trading firms that market various asset classes by providing two-way quotes to trade against others, have also invested in SportTrade.
Cohen also said that it would be prudent for a brokerage like Robinhood to enter the event and prediction market.
“The same customer segment that wants to buy Apple, probably wants to buy bitcoin, is also interested in Sunday football and so I think it’s going to be a natural evolution,” he said.
Cohen said sports betting will grow with or without the Nasdaq, and the exchange operator is well positioned to provide advanced technology and potentially make the market safer and more transparent.
“What we have to think about as a country is based only on protecting investors and making sure we are not fostering a speculative culture,” he said. (Reporting by John McCrank; Editing by Dan Grebler)