Truist’s 13th annual GLL Summit took place in Boston last week, gathering ten gaming companies to engage in discussions on various gambling industry topics, with prediction markets emerging as a prominent focus.
DraftKings became a central topic of conversation, with plans to launch its prediction-market product by December or January. This new offering will be available exclusively in states lacking online sports betting (OSB) legislation. Analyst Barry Jonas from Truist highlighted DraftKings’ leadership’s belief that prediction markets would not capture the interest of casual sports bettors, largely due to the complexities of sharp trading and the scarcity of promotions. Nevertheless, Jonas suggested that non-OSB states could be motivated to legalize these markets, while tax hikes in OSB states might be discouraged.
The business model for DraftKings’ prediction markets was outlined as requiring a modest investment with quicker returns. Profit margins are projected to surpass those of traditional OSB, as the net fee on each side of a contract tends to be higher, and promotional expenses are more restrained.
DraftKings executives reassured about their current licenses, emphasizing ongoing dialogues with state regulators. Meanwhile, companies with brick-and-mortar casino investments appeared content to let DraftKings take the initial plunge, adopting a more cautious stance themselves.
On the broader spectrum, the Las Vegas Strip is experiencing a robust fourth quarter in 2025, bolstered by a strong convention business and a busy sports calendar. The Formula 1 Las Vegas Grand Prix has been particularly beneficial for the local economy. In contrast, Caesars Entertainment has not shared in this optimism, pointing to continued softness in leisure demand which has affected hotel occupancy rates and room pricing.
Caesars is projecting caution as it moves into 2026, anticipating only minimal growth in cash flow. However, other operators remain optimistic, buoyed by upcoming conventions and events expected to drive momentum in the first half of the year. Caesars executives noted that a more positive outlook would require a recovery of business from Canada and southern California, in addition to the return of lower-end customers. The decline in Canadian visitors notably contributed to a fall in Las Vegas tourism in September and at other times during the summer.
The summit also covered the consequences of the 43-day federal government shutdown, a significant political event in the US this autumn. Although MGM voiced frustration that the shutdown “didn’t help,” the overall impact on the gambling sector was deemed minimal by analysts.
While many industry insiders are keen on the potential of prediction markets, some skepticism remains. Critics argue that the complexity and risk associated with prediction markets could deter broader adoption among casual bettors. They point out that the average sports fan, accustomed to straightforward sports betting, might find the intricacies of prediction markets intimidating.
Nevertheless, the allure of higher profit margins and lower promotional costs is compelling for operators like DraftKings, who are willing to navigate regulatory challenges and market uncertainties. The enthusiasm at the Truist GLL Summit reflected a gambling sector eager to innovate and explore new revenue streams.
As the industry grapples with these emerging opportunities, the balance between risk and reward remains a central theme. Operators must weigh the potential benefits of prediction markets against the challenges they pose, including regulatory hurdles and market acceptance. The discussions at the summit underscored a critical juncture for the gambling industry, as it seeks to adapt and thrive in a rapidly evolving landscape.
David Harrison stands tall in gambling journalism, marrying his firsthand casino experiences with a deep understanding of betting psychology. His articles transform complex gambling jargon into engaging tales of strategy and chance, making the world of betting accessible and enjoyable. David’s knack for narrative extends beyond print, making him a sought-after speaker on gambling trends and future bets. In the realm of gambling, David is both a scholar and a storyteller, captivating readers and listeners alike.
