Bernstein Predicts M&A Wave as Prediction Markets Consolidate

Analysts at Bernstein say prediction-market operators are bringing trading infrastructure in-house, a rapid shift that could trigger a wave of acquisitions across crypto platforms, sportsbooks, brokerages and standalone exchanges. In a research report on Monday, Bernstein described the industry as undergoing “operational consolidation,” with major platforms moving to control more of the prediction-market stack.

“Every consumer platform that matters has merged the front and back end of the prediction-market stack,” they said, including distribution, brokerage, exchange and clearing. Bernstein pointed to Robinhood routing major World Cup contracts through Rothera, the exchange it jointly owns with Susquehanna; DraftKings launching DKeX and moving volume away from CME and Crypto.com infrastructure; and Coinbase’s acquisition of The Clearing Company alongside its launch of event contracts.

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