Crypto.com has confirmed that customers will experience a three-second delay when placing wagers on sports games, offering some an advantage over others.
Crypto.com has revealed in its terms and conditions that customers will face a three-second delay when wagering on the outcome of sports games, to prevent ‘courtsiding.’ This delay will not apply to market makers on the exchange, giving them a potential advantage if they’re reacting in real time. That’s especially likely for those who are present at a game, who already have a time advantage over those watching on broadcast delay.
This echoes a recent filing to the Commodity Futures Trading Commission from fellow prediction market Kalshi that would allow it to similarly place delays on certain wagers. This filing doesn’t specify which customers would be subject to the delay or how long it could be.
Crypto.com is one of just a few prediction markets that can offer regulated sports event contracts, although it’s still facing opposition in Nevada. Prediction markets like it have exploded in recent months, in no small part due to interest in sports event contracts in states where sports betting is not allowed.
The impact of a wagering delay on prediction markets
After building up an audience of users interested in sporting contracts, such delays could push prediction markets towards the same reputation as equities and derivatives exchanges have dealt with in the past. Namely, users would see that preference is being given to market traders, especially in a field like sports betting, where events and circumstances can change rapidly.
While the delay is designed to protect market traders who are not at sports games from receiving delayed information, it also puts anyone who’s not at a game in person at a disadvantage. In practice, it will most likely benefit big betting firms and traders the most.
ReadWrite has reached out to Crypto.com and Kalshi for further comment.
Featured image: Crypto.com
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