Nasdaq open to exploring US sports betting opportunities

A senior Nasdaq executive has detailed how he thinks the tech-centric stock market can help support the development of the burgeoning US sports betting sector.

Tal Cohen, Nasdaq’s head of North American markets, said the country’s online gambling industry remains “fairly rudimentary” and could benefit from further development – despite its major significance in the investor community.

Speaking during an in-house interview, Cohen talked up Nasdaq’s B2B division prospects and explained that taking stock market values and translating them for the sports betting industry could greatly benefit gaming companies.

Cohen said: “We think by applying the principles of capital markets that we can really enhance the customer experience and protect the customer.

“There’s not a lot of competition or a lot of transparency. If you bring the exchange market model into sports betting, what you do is effectively introduce competition and transparency,” he added.

Earlier this year for example, Nasdaq agreed a B2B supply agreement with startup betting exchange Sporttrade to use Nasdaq’s market surveillance technology.

That deal allows Sporttrade to monitor trading patterns and protect users on its platform by identifying irregularities and unusual trading behaviour. Nasdaq also took up a stake in the operator.

Cohen continued: “Think about all the things that we can present from an in-game perspective if you put it on advanced technology. That’s why we’re super excited to have invested in Sporttrade.”

Cohen agreed the sports betting market would continue to grow exponentially regardless of Nasdaq’s involvement, although the company is actively trying to understand what role it can play in the future of the sector.

Cohen concluded: “What we’re going to have to think about as a country is just based on investor protection and making sure we’re not raising a culture of betters.

“Well, how do we do that responsibly? I think that’s going to be the moral question.”