Do you smell what The Rock is cookin’? It won’t be sports betting. According to Newsweek, World Wrestling Entertainment (WWE) has decided against partnering with regulated sports betting networks for wagering on WWE events.
The reasoning behind the decision is that all WWE products are scripted. The pressure to keep the outcomes a secret will likely prove too much, overly influencing sports betting markets.
Meanwhile, DraftKings is considering adding election betting to its services. Sites like ForecastEx and Kalshi took millions of bets on the 2024 presidential election, forcing the sports betting giant to consider whether it is feasible to offer the service.
Key Highlights
- WWE will not partner with sports betting companies because matches are scripted.
- DraftKings is considering whether to offer election contracts.
- Kalshi took in $1 billion in volume in less than a month for the 2024 Election.
WWE Abandons Sports Betting Inclusion Efforts
If you’re a fan of the WWE and hoped to place legal bets on the product, it’s not happening. Newsweek reported last week that TKO Group Holdings President and COO Mark Shapiro is confirming that the WWE will not seek to have its events included in legalized sports betting.
The report referenced a CNBC Sports videocast with Alex Sherman. Shapiro confirmed that WWE would not seek partnerships with gaming networks.
We’re not going to be asking Triple H—Paul Levesque, who runs our creative—to keep his scripts so under wraps that we can start sports betting. It just doesn’t jive.
– Mark Shapiro – President and COO TKO Group Holdings
As he stated, “Not happening. It’s not happening. We’re scripted. Look, years ago I ran Dick Clark Productions. We had enough challenge keeping the American Music Awards and the Golden Globe winners under wraps with an auditor that was there.”
He continued, “We’re not going to be asking Triple H – Paul Levesque, who runs our creative – to keep his scripts so under wraps that we can start sports betting. It just doesn’t jive.”
When sports betting became legal in the United States, many questioned whether WWE events would become part of the rotation, despite fans knowing that the company predetermines all matches.
States like Nevada have regulations that prevent sportsbooks from taking wagers on events whose outcome is already determined. This often refers to rebroadcasts of games or late-game wagering where the outcome can’t change.
The WWE is a unique proposition in that its athletic contests are scripted and known to a number of people backstage.
While there are last-minute changes, such as an in-ring injury forcing a match to end early, outcomes are known days, weeks, and even months in advance.
DraftKings Considering Lucrative Election Contract Market
The 2024 Presidential Election presented a new wrinkle to the betting world. Sites like Kalshi were allowed to offer election contract betting, similar to stock options, and millions in bets were placed on contract betting sites in the weeks leading up to the election.
DraftKings is now considering offering similar services. During the company’s Q3 2024 earnings call, CEO Jason Robbins discussed how the company may be interested in the popular betting format.
According to Robins, “I think it’s a very interesting thing. The dominant market within that is election markets, of course, and particularly during presidential elections. So, I know there’s a lot of attention on it over the last few weeks.”
However, election contract betting is a different market than sports betting. Election contracts are licensed as a financial market, meaning they fall under the oversight of the Commodity Futures Trade Commission rather than state gaming commissions.
While the market is different, the profit potential is enormous. Kalshi alone took in over $1 billion in volume for the election, and that was for a short lead-up.
Kalshi was only able to start offering contracts after a US Appeals Court allowed the company to resume trading.
Recognizing the potential behind the market, Robins stated it was “definitely something we’re looking at in advance of next presidential election and potentially there will be an opportunity to look at something sooner.”
Sources
https://www.sportsbettingdime.com/news/betting/draftkings-potentially-eyeing-election-betting-opportunities/
https://www.gamblingnews.com/news/draftkings-considers-political-betting-in-the-wake-of-the-election/
https://www.newsweek.com/tko-makes-decision-allowing-sports-betting-wwe-1982810
https://www.casino.org/news/wwe-no-longer-pursuing-sports-betting-inclusion/#:~:text=Currently%2C%20no%20legal%20sports%20gambling,the%20outcomes%20tipping%20off%20bettors.
