Company Interview / Betting on the rise of the "Super App"

Key points:

Super apps combine sportsbook, iGaming and prediction markets to increase customer value Prediction markets like Kalshi and Polymarket operate nationally and challenge traditional state models DraftKings ($DKNG) and FanDuel/Flutter ($FLTR) move aggressively into prediction markets amid legal uncertainty

Tom Waterhouse from Waterhouse VC outlines how US sports betting operators are shifting towards “super apps” that integrate sportsbook, iGaming and prediction markets into a single platform. Waterhouse states that DraftKings ($DKNG) and FanDuel, owned by Flutter Entertainment ($FLTR), are pushing hard into prediction markets because these products are federally permitted and accessible in major states such as California, Texas and Florida, where traditional sports betting and iGaming remain restricted. He notes that DraftKings has already launched a unified app to keep customers within its ecosystem and maximise lifetime value as marketing costs rise.

Waterhouse argues that prediction market platforms such as Kalshi and Polymarket are reshaping the US wagering landscape by allowing users to trade on virtually any outcome, from politics to current events, in a peer‑to‑peer style similar to Betfair. He highlights ongoing legal battles, with states like Nevada challenging federal approval, and sees significant uncertainty but also opportunity for both incumbents and new entrants across the B2B and B2C layers.

Waterhouse also points to professional bettor Tony Bloom as a template for data‑driven success in sport and wagering. Bloom’s football holdings, including Brighton & Hove Albion, Hearts, a Belgian club and a stake in Melbourne Victory (ASX:MVL), are cited as examples of applying highly refined betting models and proprietary data, now further enhanced by AI, to gain an edge.