for early access to the latest igaming videos!
and get the latest igaming news first!
Goldman Sachs is taking a closer look at prediction markets, with CEO David Solomon confirming that the bank is actively studying how it could enter the space.
Solomon told analysts that interest inside the firm has grown, noting that “The prediction markets are also super interesting,” and adding that he recently met with the leaders of two major platforms to understand their operations.
Polymarket and Kalshi are leaders in the industry and let traders take positions on the outcome of real-world events, everything from elections to economic indicators and sports events. Their rise has pushed them into wider policy debates, especially as questions continue over how these markets fit within existing financial and gambling rules.
The Commodity Futures Trading Commission already provide oversights for some of these platforms, a point Solomon highlighted as he described how the products are starting to resemble more popular financial instruments.
“When you think about some of these activities, particularly when you look at some of the ones that are CFTC regulated, they look like derivative contract activities,” said Solomon. “So I can certainly see opportunities where these cross into our business.”
Move might not come soon
Even as Goldman sees room for prediction markets to work together with its business, Solomon made it clear that any move won’t happen overnight.
He pushed back on the idea that Wall Street will rush into the sector, stating that interest doesn’t automatically translate into quick action.
“I think there’s a lot of reason to be excited and interested in these things,” he said. “But the pace of change might not be as quick and as immediate as some of the pundits are talking about. But I think they’re important, real. And we’re spending a lot of time.”
Source: CNBC
