Episode 80: Should U.S. Sportsbooks Launch Betting Exchanges?

In this episode of Zero Latency, host Brad Allen interviews Jason Trost, CEO of Smarkets, about prediction markets and Smarkets' potential expansion into the U.S. They discuss the regulatory landscape, comparing it to sports betting licenses, and the significant investment required to obtain a CFTC license. Trost shares Smarkets' vision of becoming a general trading platform, offering a variety of assets like stocks, bonds, and prediction markets. The conversation touches on the potential for sports betting within prediction markets, the challenges of market making with infinite permutations, and the cultural shifts needed for sportsbooks to adopt an exchange model. They also analyze the UK betting exchange market, its stagnation due to competition from crypto and easier access to stock trading, and the importance of user-friendly interfaces.