TLDR Crypto · MISCELLANEOUS

DIFFICULTIES OF PREDICTION MARKETS

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Summary from the TLDR Crypto newsletter

Successful prediction markets rely heavily on regularity. Both DraftKings and FanDuel have high customer acquisition costs and need to retain users who will consistently bet large amounts over time. Regular, recurring markets like sports events or economic indicators are most effective here, whereas less frequent events like elections, which don't encourage repetitive betting, will have lower long-term value.