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MyPrize is set to make history by becoming the first sweepstakes casino operator to introduce a prediction market offering, thanks to a new partnership with Crypto.com.
This announcement, made on November 4, marks MyPrize’s entry into the rapidly expanding prediction market space, which has garnered attention from various sectors. It also follows a trend of similar partnerships with CFTC-registered Crypto.com, including notable names like Truth Social and Hollywood.com.
“We are excited to partner with Crypto.com to launch all new prediction market products like sports, events, crypto, and more to our million+ users in the US and abroad,” stated Zach Bruch, MyPrize founder and CEO.
“Together we will lean in and deliver fun and engaging experiences for our players and bring major enhancements to the social, livestreaming content, and community engagement that the MyPrize platform fosters.”
Livestreaming platform in MyPrize’s plans
MyPrize has confirmed that it will offer prediction markets on sports, entertainment, cryptocurrency, and political events, as well as integrate the new offerings into its livestreaming platform.
Travis McGhee, Crypto.com managing director and global head of capital markets, added: “We are seeing a massive change in how financial markets are converging with other products. We have been at the forefront of the convergence of crypto with TradFi.
“Now, we are at the forefront of a similar convergence with live social platforms and financial markets with our partner, MyPrize. Together, we are positioned to grow, innovate, and be the leader in prediction market products, which allow information discovery of what matters to retail users.”
A collision of two controversial worlds
This landmark deal comes at a time when both prediction markets and sweepstakes casinos find themselves in regulatory gray areas, facing increasing scrutiny from lawmakers and regulators.
Many states, including Montana, California, New Jersey, and Connecticut, have banned sweepstakes casinos, raising concerns about their legality and operations. On the other hand, prediction market platforms like Crypto.com and Kalshi are under the watchful eye of the CFTC, which is still determining whether their sports event contracts are classified as gambling or regulated derivatives.
Also, state regulators have warned that collaborations with prediction-market operators could lead to unlicensed wagering.
By merging these two concepts, MyPrize may have discovered a strategy to maintain access in regions that have cracked down on traditional sweepstakes operations. Notably, the company has not excluded Connecticut from its services, unlike competitors such as Pulsz, McLuck, and Chumba Casino.
The sweepstakes operator will be looking to determine if a federal derivatives license can offer a legal pathway into states where it currently has no presence, such as New York, New Jersey, Michigan, and Nevada.
This bold move could either open new avenues for sweepstakes operators or force regulators to tighten restrictions further at the state level.
Source: NEXT.io
Image credit: Crypto.com official website
