Bank of America analysts argue that the boundaries separating sports betting, speculative trading, cryptocurrency markets, and conventional financial markets are becoming less defined, a shift that may create sustainable growth opportunities for sports betting companies.
At the center of the bank's view are two developments it expects to shape the sector: the rise of perpetual futures - commonly called perps - and the intensification of gamification on prediction markets and sportsbook platforms.
Perpetual futures are derivatives that let traders take positions on an asset's price without owning the underlying instrument. Unlike standard futures, these contracts have no set expiration date, allowing participants to maintain positions indefinitely. According to the bank, perps account for more than $90 trillion in annual global trading volume.
Bank of America points to the appeal of perps for retail participants, noting that these products enable highly leveraged exposure - in the range of 40 to 150 times on Bitcoin - and offer relatively straightforward mechanics for shorting assets such as cryptocurrencies. The bank highlights Binance and Hyperliquid as among the largest global operators in perpetual futures markets.
The analysts also observe that regulatory and product developments are underway. The Commodity Futures Trading Commission has recently implemented rules addressing perpetual futures. Separately, Kalshi registered more than $100 million of perpetual futures volume within the first 24 hours after launching its product, an example the bank uses to illustrate initial retail demand.
Bank of America interprets growth in offshore perpetual futures markets as evidence that retail users increasingly treat perps as speculative tools. If similar demand emerges onshore, the bank expects online sports betting operators to consider rapid entry into domestic perpetual markets. While current perpetual use cases predominantly focus on cryptocurrency and finance assets, the bank notes potential sports-related applications - such as perpetuals tied to athletes, teams, or cities - though it does not detail specific implementations.
In addition to derivatives, the bank anticipates continued momentum in gamification. It cites existing examples: five-minute cryptocurrency up/down markets on DraftKings Predictions, and DK Replay, a feature that permits wagers on the expected landing point of a pitch within the batter's box using anonymized historical at-bat data. These features illustrate how wagering products are incorporating faster, more interactive formats.
The bank's analysis frames these product evolutions as extensions of existing behaviors among retail users in both betting and speculative markets. Perpetual futures provide a high-leverage, continuously tradable instrument favored in offshore crypto markets, while gamified prediction products compress action and enhance engagement on sportsbook platforms.
Whether these trends translate into material shifts for operators will depend on consumer uptake and any additional regulatory developments. The bank's assessment suggests operators are likely watching these innovations closely and could act quickly if domestic demand for perps and gamified offerings grows.