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Polymarket vs Sportsbooks: Why Betting Apps are Toast
On E248, Chamath and Friedberg discussed why prediction markets like Polymarket are killing traditional sportsbooks.
Friedberg:
“I think gambling generally, as we call it, should be decriminalized.”
“And I don't like this state-by-state set up with gambling.”
“I think we should have a federal regulatory body.”
“This is not going away. People love to bet on stuff. This is part of sports, this is part of the culture.”
Chamath:
“ Look at Polymarket.”
“Polymarket raised at, whatever it was, $1-2B at $9B. Then the next weekend they announced sports betting and now they're raising money 30 days later at, allegedly, $12-15B.”
“And you can see, by the way, the way that DraftKings and FanDuel stock have reacted to this, those companies are toast.”
Friedberg:
“ The Polymarket model is the best model because it creates a market.”
“And so as information flows in, that market will dynamically adjust and everyone will get a more fair price.”
“Polymarket actually has the news before the news does.”
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